This paper measures the welfare implications of a depreciation of the US dollar against the euro using a dynamic equilibrium model. I calibrate a simple two country stochastic endowment economy with trade in goods and financial assets and exogenous variations in the exchange rate. The model...

This paper measures the welfare cost to consumers of the bloc of Central and Eastern European Countries (CEEC), plus Malta and Cyprus, of choosing a de- preciated conversion rate when joining the European Monetary Union. For this, I present and solve an appropriately calibrated small open...

Under the circumstances of the global crisis effects on risk appetite of international investors, the net FDI flows in Romania registered a sharp fall in post-crisis period to levels of 1/5 as compared to 2008. Even if the current account deficits of Romania have significantly decreased in the...

By employing a rich sample of firm-level data in seven Eastern Europe and Central Asian countries from Europe and Central Asia, our paper investigates core as well as some specific determinants of firm innovation. We find that the likelihood of engaging in innovation for a firm increases with...

When David Ricardo set the theory for comparative advantages, he imagined that one day the world will function as an economy without borders, which will be beneficial for every country. Today, the world is still far from the realization of that idea. However, Ricardo`s theory has in some way...

The debate of environmental issues and their analysis is of vital interest for economic policies. Institutions are engaged in identifying and estimating the extent of environmental impact of determinants controllable via policy measures. Annual data from the on Carbon Dioxide emission, economic...

In spite of the fact that the Czech Republic, on its entry into the European Union, undertook, within the shortest possible time limit, to meet all the terms and conditions which are required for adoption of the common European currency, the Euro, it is apparent at the present time that the...

The paper presents an extended version of the fundamental equilibrium exchange rate model (FFER). By introducing potential output into the specification of the foreign trade equations of the partial equilibrium FEER model we show that, under some plausible assumptions, the calculated level of...

This study attempts to examine empirically dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time series data for the period 1960-2005. This research tests the interrelationship between the variables using the...