This paper uses an intertemporal model of the current account to evaluate the fluctuations in current account balances experienced by Euro area countries over the last three decades. In the model current account balances are used to smooth consumption and they are driven by expectations about...

In this paper we investigate how strategic interactions among domestic and foreign producers influence the structure of the industry. Especially, we focus on the foreign firms choice between exporting versus servicing these markets by investing in a plant located in host country when is facing...