We study the underground economy in a dynamic and stochastic general equilibrium framework. Our model combines limited tax enforcement with an otherwise standard two-sector neoclassical stochastic growth model. The Bayesian estimation of the model based on Italian data provides evidence in favor...

This paper applies 'Business Cycle Accounting' methodology introduced by Chari, Kehoe and McGrattan (2002a) to the UK economy. In particular, I examine the cyclical episode from 1979 to 1989. The chosen method enables me to decompose fluctuations in aggregates to isolate the effects...

Growth in the CESEE region will follow the unimpressive pattern displayed by the euro area. The longer-term convergence of income levels in the CESEE countries can no longer be expected to be as rapid as was assumed a decade or so ago. Growth in the period 2015-2017 is not going to deviate...

This paper explores the evolution of Swedish fiscal policy from one extreme approach to another one in less than four decades. After the demise of the Bretton Woods-system in the early 1970s, Swedish fiscal policy was based on a Keynesian approach with the goal to stabilize the business cycle...

The objective of the paper is to contribute to an explanation of Russia's economic decline during its transition to capitalism. The authors argue that, to an important degree, the dismal performance of the Russian economy stems from the overall vision underpinning the transition to capitalism,...

The objective of the paper is to contribute to an explanation of Russia's economic decline during its transition to capitalism. The authors argue that, to an important degree, the dismal performance of the Russian economy stems from the overall vision underpinning the transition to capitalism,...

Meeting of the convergence criteria adopted in the Maastricht Treaty allows to ensure the stability of the zone and to increase its position in the international arena. For this to happen, achieving of the required level of convergence must be long-term and based on sound evidence. Greece when...

Turkey featured a somewhat paradoxical evolution in income distribution between 1994 and 2005. During 1994-2002 (marked by the 2000-2001 financial crisis), growth was pro-poor in the sense that the income of the poor decreased less than the income of the well-off. Between 2002 and 2005, the...

In terms of macroeconomic performance, the Eurozone’s first decade is a story of successful inflation-targeting by the ECB for the common currency area as a whole combined with the persistence of real exchange rate and current account disequilibria at member country level. According to the...