This memorandum surveys the empirical literature about the effects and determinants of clusters. It finds that clusters generally lead to more innovations, knowledge spillovers, faster diffusion of technologies and knowledge, and competitive advantages. The presence of a skilled labour force...

This paper explores the future of unemployment insurance in the Netherlands against the background of various social and economic trends. It starts by discussing the literature on optimal unemployment insurance. This aims to demonstrate the key trade-offs that the government faces in designing...

CORTAX is applied in Bettendorf et al. (2006), a simulation study on the economic and welfare implications of reforms in corporate income taxation. This technical documentation of the model consists of the derivation and listing of the equations of the model and a justification of the calibration.

The movement of the level of house prices in the Netherlands between 1980 and 2007 is explainable fairly well by fundamental supply and demand factors. Empirical research has shown that the overvaluation of approximately 10% that existed in 2003 shrunk to approximately 0% in 2007. This was not...

This paper reviews arguments for government interference in the education sector and discusses the effectiveness of commonly used policy instruments. There are both efficiency and equity reasons for government intervention. Particular attention is paid to education spillovers (an efficiency...

There are two methods in use to determine the contributions of expenditure categories to economic growth. In the conventional 'international method', total imports are deducted from exports, whereas in what is known as the 'Dutch method', final and intermediary imports are allocated to all...

Good statistical measurement of services trade becomes more and more important now trade in services gets the attention of policymakers. In 1995 many countries decided to liberalise services trade according to the General Agreement for Trade in Services (GATS). Also in the Doha round the WTO...

The composition of economic growth can be analyzed in two different ways. In the 'traditional method' for the decomposition of GDP growth, total imports are deducted from exports. This approach underestimates the importance of exports for the growth in GDP, and overestimates the importance of...

This memorandum explores the question whether regulation in telecommunications encourages or hampers the development of new technologies. Contrary to other network industries, the telecommunications industry is more and more characterized by several, competing networks, such as cable, copper,...

After the flood disaster in 1953 in the southwestern part of the Netherlands, Van Dantzig tried to solve the economic decision problem concerning the optimal height of dikes. His solution has a fixed probability of flooding after each investment (Econometrica, 1956). However, when there is...