This paper starts by showing that in the European car industry, there exist cross-country taste differences along the product attribute dimension that signifcantly drive net trade patterns and reduce the volume of trade. Further it is shown that, after the creation of the European common market,...

What are the drivers of the large Target2 (T2) balances that have emerged in the European Monetary Union since the start of the financial crisis in 2007? This paper examines the extent to which the evolution of national T2 balances can be statistically associated with cross-border private...