We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

In this paper we study two closely related issues. First, the role of technology heterogeneity and diffusion in the convergence of GDP per worker observed across the European regions, in the absence of data on regional TFP. Second, the spatial pattern of the observed regional heterogeneity in...

We propose in this paper a likelihood-based framework forcointegration analysis in panels of a fixed number of vector errorcorrection models. Maximum likelihood estimators of thecointegrating vectors are constructed using iterated GeneralizedMethod of Moments estimators. Using these estimators...

Present paper makes some comments on the conclusions of (Bonesmo Fredriksen, 2012) who claims among others that “…Furthermore, EU income inequality is found to have increased over the past 25 years, albeit at a slower pace since 2000”. My comments are that the above conclusion depends on...

By using an existing and a new convergence measure, this paper assesses whether bank loan and bond interest rates are converging for the corporate sector across the euro area. Our sample of 828 bond issues suggests that integration of the primary euro-denominated bond market is complete; there is...

This paper examines point and density forecasts of real GDP growth, inflation and unemployment from the European Central Bank’s Survey of Professional Forecasters. We present individual uncertainty measures and introduce individual point- and density-based measures of disagreement. The...

This paper takes a panel cointegration approach to the estimation of short- and long-run exchange rate pass-through (ERPT) to import prices in the European countries. Although economic theory suggests a long-run relationship between import prices and exchange rate, in recent empirical studies...

The aim of this research is to investigate the relationship between obesity and wages, using data for nine countries from the European Community Household Panel (ECHP) over the period 1998-2001. We improve upon the existing literature by adopting an Instrumental Variable Quantile Regression...

In the present paper an attempt will be made to find an empirical relationship between poverty risk and the number of strikes. For this finding panel data are used covering European countries (1995 - 2006). These data are elaborated by means of Eviews software package

In this paper we test whether a reallocation of government budget items can enhance long-term GDP growth in a set of European countries. We apply modern panel data techniques to the period 1970-2006, and we use three alternative dependent variables in a growth regression: economic growth, total...