This paper presents a two-country model linking Poland and the euro area and applies it for assessment of heterogeneity … describing agents' decision-making in Poland and in the euro area. On the contrary, we find strong evidence for heterogeneity in … estimating the costs of Poland's entry to the European Monetary Union, associated with giving up the monetary autonomy and losing …

shocks in the euro area. Based on theoretical insights, it identifies the broad characteristics that a shock absorber based …-up rates across European countries. The analysis suggests that the shock absorber should: i) give rise to macro cross … generosity; ii) be activated by a trigger; and iii) feature partial experience rating. The simulation results, confirmed by …

shocks in the euro area. Based on theoretical insights, it identifies the broad characteristics that a shock absorber based …-up rates across European countries. The analysis suggests that the shock absorber should: i) give rise to macro cross … generosity; ii) be activated by a trigger; and iii) feature partial experience rating. The simulation results, confirmed by …