This paper investigates economic convergence in real income per capita between 27 European Union countries. We employ a non-linear latent factor framework to study transitional behavior among economies between 1970 and 2010. Our results offer important insights on the economic catch-up exhibited...

Using an estimated large-scale New-Keynesian model, we assess welfare and business cycle consequences of a fiscal union within EMU. We differentiate between three different scenarios: public revenue equalisation, tax harmonisation and a centralised fiscal authority. Relative to the status quo,...

During the past half century many nations have adopted policies whose function is to discourage cartels and other restrictive practices. Industrialized nations led the movement toward pro-competition policies, but more recently, developing nations have begun to join the parade. Initial steps...

Helpman, Melitz, and Rubinstein (2008)HMRpresent a rich theoretical model to study the determinants of bilateral trade flows across countries. The model is then empirically implemented through a two-stage estimation procedure. This note seeks to clarify some econometric aspects of the estimation...