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This paper describes some of the features of a new dynamic general equilibrium framework (RHOMOLO) being developed at the European Commission (JRC-IPTS, together with DG REGIO) for evaluating EU Cohesion Policy. The design of the model reflects the objectives of Cohesion Policy, and a broader...
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The paper reviews adjustment dynamics in the EMU on the basis of estimated DSGE models for four large EA Member States (DE, FR, IT, ES). We compare the response of the four countries to identical shocks and find a particularly strong response of employment and wages in ES, a high sensitivity of...
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Migration interacts with the domestic labour market through the increase in labour supply from immigration when labour market conditions improve and labour market tightness increases. Lozej studies the amplification mechanism that arises when there are search frictions, as it becomes more...
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The inverse relationship between unemployment and Gross Domestic Product (GDP), commonly known as Okun?s law, has been … on unemployment is a particular feature of the Spanish economy. During the current economic downturn unemployment rate … unemployment rates from 20 percent of the labour force to levels slightly above the European average. The analysis of the …
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