In this paper we build and estimate a two-region DSGE model of a small open economy within the European Monetary Union. We evaluate the properties of the estimated model and assess its forecasting performance (point and density) relative to reduced form models such as VARs. In addition, we study...

The present sovereign debt crisis in the Economic and Monetary Union of the EU (EMU) is partly attributable to the pronounced increase in external imbalances across northern and southern euro zone countries during the years running up to 2007 (Lane and Milesi-Ferretti, 2011). While the behavior...

In economic models of energy and climate policy, endogenous technological change is generally introduced as the result of either investment in research-and-development or of learningby-doing. In this paper, we analyze alternative ways of modeling learning-by-doing in the renewable energy sector...

This paper analyses the economic effects of the eastern enlargement of the EU both on the existing Member States and the candidate countries using simulation results of a dynamic computable general equilibrium model. In addition to conventional trade policy impacts such as custom union formation...

Uncertainty about compliance costs causes otherwise equivalent price and quantity controls to behave differently. Price controls - in the form of taxes - fix the marginal cost of compliance and lead to uncertain levels of compliance. Meanwhile quantity controls - in the form of tradable permits...

Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constant-elasticity-ofsubstitution (CES)...