Una nota sobre integraciones económicas

A regional integration, to be politically acceptable must lead to "strictly superior situation" (in which the average income of all members increase) in the paretian sense. To reach that objective the "increment effect" (increment of the aggregate income) that every integration brings with it, must compensate amply the "redistribution effect" (equalization price factors).
In the case of a "net redistributive effect" (i.e. in case the increment effect be not sufficient to compensate the redistribution effect, which is a condition for attaining a "strictly superior situation" which is the objective) a situation compatible, with a regional liberalization would be the creation of a compensation fund.
Such a fund would be formed with the increments of average income of the participants, attributable to the integration and destined:
1) to compensate the reductions of average income which some of the participants would experience;
2) realization of investments of common benefit and high priority for purposes of regional development
Instituto de Investigaciones Económicas