This paper proposes a new paradigm for the analysis of monetary policy. From an econometric point of view this new approach is just as easy to implement as reduced form analysis, but is robust to the Lucas critique. It requires no explicit prior theory and yet it encompasses all standard DSGE...

Does schooling generate social returns in excess of the private returns captured by the individual who makes the human capital investment? As a strategy to detect human capital externalities I use Dutch survey data to estimate the impact of the average human capital stock in a region on...

For the new member states of the EU, the question of choosing the optimal macroeconomic policy mix is rather complicated as these countries are all in the dynamic movement towards joining the European Economic and Monetary Union (EMU). This implies a considerable change in macroeconomic policy...

The EU15 countriesu0092 real GDP per capita levels adjusted for purchasing power converged in 1960u00962001. Convergence occurred in two spells, in 1960u009673 and 1986u00962001, with an interim period of stagnation. In this paper, we analyse both s and b convergence and discuss the impact of EU...

The 2005 update of the Danish convergence programme, covering the period up to 2010, was submitted to the Commission on 30 November 2005. The programme is based on the Budget Bill for 2006 adopted by Parliament on 14 December. The programme broadly follows the model structure for stability and...

This paper examine differences between risk-neutral and objective probability densities of future interest rates. The identification and quantification of these differences are important when risk-neutral densities (RNDs), such as option-implied RNDs, are used as indicators of actual beliefs of...

Two seemingly unconnected empirical results suggest an intriguing mechanism. First, economic integration helps harmonize prices internationally, with trade being the primary channel (Rogoff 1996, Goldberg and Knetter 1997). Second, monetary union may greatly increase the amount of trade among...