In 1992 we published estimations about the probable effects of the EU membership on the Finnish economy. The profound economic shock of the early 1990s has made the assessment of the economic impact of Finland?s EU membership a difficult task. Nonetheless, the basic trends in relative prices,...

This study analyses possibilities for independent national redistribution and risk sharing policy in EMU by reviewing literature on fiscal federalism. The currency union will not directly affect the national welfare policy. It might increase mobility of people and capital, which would tighten...

Small open economies in Europe share many of the same characteristics, policy choices and economic problems. This paper argues that Belgium is profoundly affected by its position as a small open economy in the core of the European Union. Yet, this European dimension does not prevent that even a...

The study analyses the capital income taxation of foreign-source income, where residence and source criteria are the two well-known tax criteria. The study presents a globally optimal tax rule which equalizes the shadow price of capital in the countries and which is assumed to be a weighted...

In this study the economic implications of eastward enlargement are analyzed using a multi-regional, dynamic general equilibrium model. EU's eastern enlargement is, in one respect, conventional regional integration where new entrants joins a customs union. In the common trade policy an important...

This paper deals with the question whether the automatic fiscal stabilisers are strong enough to solve the problem of asymmetric shocks in the Euro area. The question is important for many reasons, for instance in terms of policy coordination and fiscal federalism. The paper reviews the current...