This paper addresses the question of the social policy harmonization in the European Union. In adopting a common monetary policy, Europe is faced with structural and fiscal concerns, as national growth levels differ. Another possible factor in output shocks are the levels of various social...

This paper presents an empirical assessment of bilateral migration flows into the EU-15 countries. Using an extended gravity model, it identifies economic, welfare state, geospatial and linguistic variables as the principal determinants of migration flows into the EU-15 countries. As long as its...

This paper investigates the ability of the Stability and Growth Pact to prevent governments in the "euro zone" from running excessive budget deficits. It is shown that in a static two-country game, the Pareto-optimal strategy of no excess deficits cannot be systematically enforced, whatever the...