This paper presents an estimated open economy dynamic stochastic general equilibrium model for Estonia. The model is designed to highlight the main driving forces behind the Estonian business cycle and to understand how euro area economic shocks and its monetary policy affect the small open...

This paper looks for empirical evidence of rational speculative bubbles on the Estonian stock market during the period 1996–1999. Four different testing methodologies are used in the paper: two tests are indirect, looking for statistical “footprints” of the speculative dynamics in the...

This paper examines the Law of One Price using Nielsen disaggregated price data covering 13 euro area countries and 45 different product categories over the time period 2008 to 2012. The empirical methodology is based on a non-structural log-linear regression with spatial effects in both the...