Integrazione dei mercati e mobilità dei fattori: le interazioni tra soggetti complessi e i problemi del disegno di una organizzazione federale

Translated title of the contribution: [Autom. eng. transl.] Market integration and factor mobility: the interactions between complex subjects and the problems of the design of a federal organization

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

[Autom. eng. transl.] Our contribution seeks to place the debate on levels of government and the European economic constitution within the framework of an analysis of the potential or already actual consequences of the progressive, but still less than complete, process of integrating the markets for goods and goods. production factors. The discussion is grafted onto a theoretical frame of reference that seeks to extend the traditional approach by considering the results of the most recent theory, especially in terms of uncertainty caused by the incompleteness of markets, asymmetric distribution of information, use of contracts as mechanisms of coordination, repeated relationships and reputation building mechanisms. All these strands of the most recent theory highlight the limits that the paradigm of perfect competition manifests if it is used as an interpretative key to real economic phenomena. In particular, the abandonment of the paradigm of perfect competition on the one hand highlights the contexts in which public intervention is desirable, both to increase efficiency by stimulating the use of the production capacity of the system, and for redistributive purposes; on the other hand it makes the benefits normally attributed to the opening and integration of markets less clear, emphasizing above all the possibility that there are asymmetric effects in the remuneration of production factors and therefore that political interventions are necessary to guarantee the social consent to the integration itself . If therefore the needs of government of the economy, already present in a context of relative non-integration, become more pressing with the progress of integration, the problem of the attribution of competences to the levels of government becomes central. We distinguish, hoping not to simplify too much, two major categories of public intervention: efficiency policies (aggregate and industrial demand policies) and redistributive policies (direct or indirect). The assignment of the former to the level of supranational government seems desirable, above all in order to avoid an inefficient use of it due to the crossing of the boundaries of their effects which becomes more and more frequent as a consequence of integration. Instead, redistributive policies seem to have a more natural place at the national level. However, the implementation of these latter requires the availability of a revenue that depends instead on the first ones and therefore an attribution of competences such as the one suggested would make the national governments' economic policy initiative dependent on the supranational authorities dependent on the availability of means. There are already clear signs that this triggers strong resistance to change by national governments, which tend to claim sovereignty for themselves and to hinder the transition to a supranational level of skills and, more generally, evolution in the federal sense Union. A guarantee for member states could be to establish rules for the redistribution of revenues, such as those experienced in existing federal models, which guarantee everyone is not in a too disadvantaged position once the resistance to a strong integration of the markets has been removed. This safeguard could be included in a project of economic constitution. However, the rigidity that we want to introduce should be identified with caution, perhaps limiting ourselves to establishing minimum constraints, and leaving to the parties the exercise of discretion for possible adjustments in respect of these.
Translated title of the contribution[Autom. eng. transl.] Market integration and factor mobility: the interactions between complex subjects and the problems of the design of a federal organization
Original languageItalian
Title of host publicationProfili della costituzione economica europea
EditorsALBERTO QUADRIO CURZIO
Pages235-285
Number of pages51
Publication statusPublished - 2001

Keywords

  • DISEGNO ISTITUZIONALE
  • INTEGRAZIONE
  • INTERAZIONI RIPETUTE
  • LIVELLI DI GOVERNO

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