In this paper, the Spanish fiscal policy sustainability is tested for the period 1964-1996. The theoretical framework used in this paper draws from Quintos (1995) where a distinction between weak and strong conditions for deficit sustainability is pointed out. From an empirical point of view,...

In this paper we present new evidence on the effect of the Euro on trade. We use a data set containing all bilateral combinations in a panel of 26 countries covering the period 1967-2008. We estimate the equation using two sets of variables: a standard one and a second one built according to the...

In this paper a Blanchard (1985) type model has been applied to a small open economy to analyse the long-term behaviour of current account balance. It shows, under the assumptions of the model that the current account balance, net-of-government-debt wealth of households, the difference between...

The purpose of this paper is to estimate a stochastic-intertemporal model of effective consumption. Our main emphasis is on assessing whether there is a significant relationship (substitutability or complementarity) between government expenditure (consumption and investment) and private...

This paper aims to analyse the factors affecting exchange ratedetermination for the Spanish peseta. Nevertheless, this is not its onlyobjective. Two different models have been estimated using the cointegrationmethodology. One of them includes Spanish variables and aggregate...