The paper analyses the evolution of the trade specialisation pattern in the ten countries which will join the EU in 2004, by studying the dynamics of their comparative advantages over the period 1993-2000. The study finds that, although some countries are still broadly relying on natural...

Pricing-to-market (PTM) behaviour implies that exporters adjust their prices to the prevailing prices in their export markets. For the importing country, PTM effects can be interpreted as a measure of the stability of domestic prices against foreign price and exchange rate developments. PTM...

This paper analyses the relationship between openness to trade and wages at the industry level (15 manufacturing industries) in 25 EU countries over the period from 1995 to 2005. By applying a cross-country and industry-specific approach, it is possible to control for unobserved heterogeneity at...

There is an ongoing debate in the literature about the quality content of Chinese exports and to what extent China imposes a threat to the market positions of advanced economies. While China’s export structure is very similar to that of the advanced world, its export unit values are well below...

During the last decade, markets for covered warrants (bank-issued options) have flourished in Europe and Asia. In these markets, investors often face a choice between many instruments that differ only slightly from each other. Based on retail trades in call options on the German DAX index, this...

Rational expectations has been the dominant way to model expectations, but the literature has quickly moved to a more realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form their expectations. A standard assumption is that...

We develop a dynamic stochastic general equilibrium model with rational inattention by households and firms. Consumption responds slowly to interest rate changes because households decide to pay little attention to the real interest rate. Prices respond quickly to some shocks and slowly to other...

In the context of its four-year work programme, Analysing and Anticipating Change to Support Socio-Economic Progress 2001-2004, the Foundation launched a project on 'European Knowledge Society (KS) foresights for living conditions, working conditions and industrial relations'. The purpose of...

In the context of its four-year work programme, Analysing and Anticipating Change to Support Socio-Economic Progress 2001-2004, the Foundation launched a project on 'European Knowledge Society (KS) foresights for living conditions, working conditions and industrial relations'. The purpose of...

This report provides results on the advancement indicators of the knowledge-based society for EU countries, enhanced where possible by data from the EU acceding and candidate countries, the US and Japan. It is based on available statistical information and can be used as a starting point in the...