This paper outlines a simple regression-based method to decompose the variance of an aggregate time series into the variance of its components, which is then applied to measure the relative contributions of productivity, hours per worker, and employment to cyclical output growth across a panel...

This paper establishes eight stylized facts on the evolution of the localization of economic activity across industries and regions in the EU-15 since 1980. Localization, which nests concentration and specialization, is measured by a Theil index. The stylized facts reveal a broad aggregate trend...

This paper has been prepared as a part of a broader Ezoneplus project that evaluates European Monetary Union (EMU) and its enlargement to prospective members in central and eastern Europe. The project is financially supported by European Commission (HPSE-CT-2001-00084). It contains the following...

The main topic of the paper is optimal dynamics, i.e., timing of entry of the accession countries in the ERM 2 and EMU. Some of the crucial questions addressed in the paper are as follows: a) Should accession countries aim at an early or a delayed entry into the EMU? b) What are economic and...

This paper documents assimilation of immigrants in European destinations along cultural, civic, and economic dimensions, distinguishing by immigrants' generation, duration of stay, and origin. Based on the European Social Survey, it suggests that assimilation may have multiple facets, and take...

Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor...

We interpret social transfers broadly as a set of measures to reduce or relieve poverty, and study how well this purpose is served in the countries that participated in the European Union Statistics on Income and Living Conditions in 2007. Motivated by the findings, we characterise a social...

This paper studies the educational investment decisions of returning migrants while abroad in the context of their decisions about the choice of activity upon returning and the duration of migration. The theoretical model builds on Dustmann (1999), Dustmann and Kirchkamp (1992) and Mesnard...

This paper explores if more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM...