Front Matter Page
Research Department
Contents
I. Introduction
II. The Theoretical Setup
A. Firms
B. Government
C. Households
D. Convergence of Regional Per Capita Income Levels
E. Regional and National Dynamics After Unification
F. Interregional Income Redistribution
III. Model Calibration and Solution Technique
IV. Quantitative Results
V. Conclusions
Table 1. Benchmark Parameters and Equilibrium Values
Figures
1. Economic Development After Korean Unification for θ(0)= 0.10
2. Economic Development After Korean Unification for θ(0) = 0.20
3. Economic Convergence for Alternative North Korean Post-Tax Income Levels
4. Economic Convergence for the Fiscal Policy Rule
References