This paper is motivated by the idea that the enlargement of the European Union is only one part of an overall process,known as economic integration, which characterizes the involvement of European economies into the global division of labor.Therefore,the paper aims at providing a quantitative...

We examine the dynamics of bank lending to the private sector for countries of the Euro area by applying a Markov switching error correction model.We identify for Belgium, Germany, Ireland and Portugal stable, mean reverting regimes and unstable regimes with no tendency to return to the long...