More competition among banks typically enhances the welfare of consumers. However, it may also involve a threat to financial stability, that is of vital importance for the functioning of economies. Read also the accompanying <a href="http://www.cpb.nl/en/pressrelease/3213114/no-need-sheltering-banks-competition">press release</a>. This study reveals that many forms of competition do...

WorldScan is a recursively dynamic general equilibrium model for the world economy, developed for the analysis of long-term issues in international economics. The model is used both as a tool to construct long-term scenarios and as an instrument for policy impact assessments, e.g. in the fields...

Independent national fiscal institutions can play a major role in fiscal policy and in maintaining and restoring sustainability of a country's public finance. This paper describes the role of CPB in Dutch fiscal policy and discusses its merits and risks. And to what extent can it provide...

This document presents four scenarios for the future of finance. The goal of our study is to imagine the future of finance and to identify challenges faced by policymakers in fighting systemic risk. It builds upon a tradition within the CPB to develop scenarios for policy analysis. We develop...

Public spending on child care has taken a high flight in the Netherlands. One of the key policy goals of child care subsidies is to stimulate labour participation. We study the impact of child care subsidies on labour participation using a general equilibrium model.Next to the labour supply...

This paper describes and discusses the division of tasks between Dutch central and local government and their financing in view of economic theory. The paper starts with an overview of the first and second generation theories of fiscal decentralisation. This theoretical perspective is used for...

This document reviews the literature on the relationship between financial markets and the real economy. In the light of the recent financial crises, we focus on channels that are likely to be important in times of financial stress. Some channels are governed by balance sheet effects like...

Individual savings accounts are a recurring reform option for unemployment insurance. Under a system of individual accounts, individuals are forced to save part of their income into an individual account out of which benefits are paid during unemployment. Individuals are allowed to have a...

The last four decades, Dutch exports and imports grew annually about 7.5%, while re-exports rocketed in the last two decades. Using a gravity approach this paper finds that the increase in trade is largely caused by income developments. Trade policy, consisting of reductions in import tariffs...

This paper describes a labour market extension for the CGE model "WorldScan". The labour market module features endogenous labour supply at two margins: participation and hours of work. Involuntary unemployment is captured through a collective bargaining ("right to manage") set-up. The paper...