This paper analyses empirically how cross-border consumption varies across product and services categories and across household characteristics. It focuses on the part of cross-border sales that arise due to work-related cross-border crossings; it analyses the cross-border consumption behaviour...

This paper studies how peers’ financial behaviour affects individuals’ own investment choices. To identify the peer effect, we exploit the composition of the Luxembourg population and use the differ-ences in stock market participation across various immigrant groups to study the effect on...

Using individual supermarket prices, this article shows that, even for a narrowly defined geographical and highly integrated cross-border area, absolute deviations from the law of one price (LOP) rise, as distance increases and borders are crossed. Being inside the former Belgian-Luxembourg...

This paper reviews recent approaches to modeling the labour market and assessestheir implications for in‡ation dynamics through both their e¤ect on marginalcost and on price-setting behaviour. In a search and matching environment, weconsider the following modeling setups: right-to-manage...

This paper contributes to the already vast literature on demography-induced internationalcapital flows by examining the role of labor market imperfections and institutions. We setup atwo-country overlapping generations model with search unemployment, which we calibrateon EU15 and US data. Labor...

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit,...