This paper examines the feasibility of implementing Linear Quadratic Gaussian (LQG) Control in structural cointegrated VAR models and sheds some light on the two major problems generated by such implementation. The first aspect to be taken into account is the effect of the presence of unit roots...

Structural VARs have been extensively used in empirical macroeconomics during the last two decades, particularly in analyses of monetary policy. Existing Bayesian procedures for structural VARs are at best confined to a severly limited handling of cointegration restrictions. This paper extends...

Four years after the start of the Arab Spring uprisings, the macroeconomic situation in the EU’s Southern Neighbourhood remains weak and vulnerable and the recent intensification of civil strife and military conflicts is exacerbating this economic malaise. Macroeconomic performance may not...

The global crisis has taken its toll on the EU’s prime position in international trade. While the EU still has the largest relative market shares, its position has deteriorated since the crisis, much more so than the US, and its comparative advantage in knowledge-intensive goods has been...