We incorporate trade in tasks à la Grossman and Rossi-Hansberg (2008) into a small open economy version of the theory of firm organization of Marin and Verdier (2012) to examine how offshoring affects the way firms organize. We show that the offshoring of production tasks leads firms to...

The paper takes a first look at the host and home country effects of German FDI in Eastern Europe (EE) based on new survey data of 1050 investment projects in EE by 420 German multinationals during the 1990s. We find that German investors transfer a substantial amount of financial capital to EE....

In the course of the EU enlargement process, the participation of accession countries in the European Monetary Union might lead to a significant redistribution of seigniorage wealth if current regulations prevail. In general, accession countries will be winners from this redistribution, for...

This paper looks at Austria's pattern of development and its lessons for Eastern Europe. Austria's development path is characterized by two features. In the post-war era Austria was among the countries with the fastest convergence rate. At the same time Austria's movement up the technological...

We incorporate trade in tasks l a Grossman and Rossi-Hansberg (2008) into the international trade theory of fi rm organization of Marin and Verdier (2012) to examine how off shoring affects the way firms organize. We test the predictions of the model based on firm level data of 660 Austrian and...

This paper analyses subjective economic well-being in several Eastern European countries from 1991 to 1995. Economic well-being explains a significant part of the variation in overall life satisfaction of Eastern Europeans. In an ordered logit model, the determinants of subjective economic...

Die Transformationsländer Mittel- und Osteuropas (MOE) stecken in der Zwickmühle. Einerseits zwingt der Wettkampf um international knappes Kapital möglicherweise zu Steuersenkungen, die zu Einnahmeausfällen führen. Andererseits werden gerade in Zeiten der Transformation staatliche Einnahmen...

This paper deals with a "new" type of monetary policy making: Inflation Targeting (IT). It attempts to identify reasons for which countries might be inclined to adopt this framework for monetary policy. By reviewing recent experience of inflation targeting countries, the paper outlines the major...

The paper addresses and summarizes the role of unemployment in the transformation process from an economic system with a dominant state sector to a system with a dominant private sector. After reviewing the basic facts and some of the main explanations why unemployment is high during transition...