This study presents a comparative analysis of regulatory thresholds applicable to firms in France and in Germany. A central question tackled by the report is whether regulations related to limits on firms’ employment appear to prevent French firms from growing above these thresholds. The first...

As institutions matter for political and economic outcomes, they are (at least partly) shaped by the interests of political agents acting under these limitations. However, empirical evidence documenting such endogenous change of institutions is scarce. We address the issue by examining the link...

We derive counterfactual national interest rate paths for the 17 Euro Area countries for the period 1999 to 2012 to approximate the interest rates countries would have implemented had they still been able to conduct independent monetary policy. We find that prior to the financial crisis the...

Recent contributions to the political economics literature (Trebbi et al. 2007; Aghion et al. 2004) have challenged the view that political institutions are exogenous to the behaviour of agents in the political arena. We explicitly address the potential endogeneity of institutions by examining the...