A series of tit-for-tat events — from North Korea’s missile launch on April 13, 2012 and its third nuclear weapons test on February 12, 2013 to the UN Security Council Resolutions 2087 and 2094 — has only escalated the North Korean nuclear crisis to its new height. It is highly...

We simulate the impact of a customs union and an exchange rate unification of North and South Korea. Factor mobility and technological change are of critical importance. If factor markets do not integrate, the macroeconomic impact on South Korea of economic integration is relatively small, while...