What are the economic consequences of leaving the EU? This question is at the heart of the Brexit debate. Some studies address this question by analysing how countries fared after joining the EU (see Campos et al. 2014 or the survey by Crafts 2016). In recent work (Dhingra et al. 2016a, 2016b), we take an alternative approach that estimates the consequences of Brexit by directly modelling the effects of leaving the EU on the UK economy Our work focuses on two channels: trade and net fiscal contributions to the EU budget. We present results using both a structural gravity trade model and reduced form ... READ MORE
