We propose a simple intertemporal model of output and current account dynamics that we estimate using a cointegrated VAR approach. We suggest a method for identifying global and country-specific shocks from the VAR and test it, using cross-country evidence.

This paper deals with the existence of a common European growth cycle and its identification. Based on the analysis of some descriptive statistics in the time and frequency domain there is clear evidence of comovement in output growth among European countries.

A money demand relationship for Italy is estimated from 1970 to 1994 within a cointegrated VAR framework. Changes in the money market fue to an important financial innovation process are introduced in the cointegration space through a Logistic Smooth Transition function tested and estimated at...

Existing methods of reconstructing historical Euro-zone data by aggregation of the individual countries' data raises numerous difficulties due to past exchange rate changes. The approach proposed here is designed to avoid such distortions, and aggregate exactly when exchange rates are fixed. In...

This paper considers industry earnings differentials in Ireland between 1987 and 1994. Earnings equations are estimated using data from 2 cross-section surveys. Industry differentials are calculated and their stability over time and the importance of industry in determining earnings assessed....

In this paper the authors study the determinants of the long term yield spread between Italian and German government bonds using daily observations for a period 1 January 1995- 28 October 1997.

This paper discusses some of the issues related to the determination of the future behavior of euro exchange rates. It considers the impact of European-wide productivity and velocity disturbances on 'portfolio' diversification in Europe, under a single currency.

Globalization features one of the major global trends which shape economic outcomes in developing and developed countries. Standard results from the empirical growth literature suggest that participation in worldwide trade is an important determinant of economic growth. In contrast to previous...

The aim of this paper is to understand whether international trade may enhance innovation and growth through an increase in competition. We develop a two-country endogenous growth model, both countries producing the same set of goods, with firm specific R&D and a continuum of oligopolistic...

This paper studies the welfare effects of international competition in the market for innovations, and analyzes how competition affects the costs and the benefits of cooperative and non-cooperative R&D subsidies. I set up a two-country quality-ladder growth model where the leader, the home...