We propose a criterion to determine the number of factors in a datarich environment by comparing surfaces under the scree plot. Monte Carlo simulations shows that the finite-sample properties of our criterion outperform benchmarks in the dynamic factor model literature

In this study we construct a business cycle indicator for the Netherlands. The Christiano-Fitzgerald bandpass filter is employed to isolate the cycle using the definition of business cycle frequencies as waves with lengths longer than 3 years and shorter than 11 years. The coincident business...

This paper discusses the endeavours of policy makers to come to some degree of wage coordination among EU countries, aiming at aligning wage growth with labour productivity growth at the national levels. In this context, we analyse the wage and productivity developments in Germany, the European...