Thema Europa

Can EU Conditionality Remedy Soft Budget Constraints in Transition Countries?

Soft budget constraints (SBCs) are a persistent feature of transition economies and have been blamed for a lack of fiscal consolidation and sluggish growth. EU eastward enlargement has been conditioned on tackling SBCs. This paper analyzes such outside conditionality theoretically and empirically. First, by modeling the SBC problem as a war of attrition between the applicant countries' governments ...

International Market Integration for Natural Gas? A Cointegration Analysis of Prices in Europe, North America and Japan

This paper investigates the degree of integration of natural gas markets in Europe, North America and Japan in the time period between the early 1990s and 2004. The relationship between international gas market prices and their relation to the oil price are explored through principal components analysis and Johansen likelihood-based cointegration procedure. Both of them show a high level of natural ...

Do Eurozone Countries Cheat with Their Budget Deficit Forecasts?

We estimate the political economy determinants of budget deficit forecast errors. Since the adoption of the Stability Pact, Eurozone governments have manipulated forecasts before elections. The political orientation and the institutional design of governments also affects the quality of forecasts.

Immigrant Performance and Selective Immigration Policy: A European Perspective

It Makes Economic Sense to Open Borders

European Labour Mobility: Challenges and Potentials

European Union economies are pressed by (i) a demographic change that induces population ageing and a decline of the workforce, and (ii) a split labour market that is characterized by high levels of unemployment for low-skilled people and a simultaneous shortage of skilled workers. This lack of flexible high-skilled workers and the aging process has created the image of an immobile labour force and ...

Basic Road Pricing Solutions

Immigrant's Economic Performance across Europe: Does Immigration Policy Matter?

Drawing on panel data from the European Community Household Panel (ECHP), the British Household Panel Survey (BHPS) and the German Socio-Economic Panel Study (SOEP), we compare the economic performance of immigrants to Great Britain, West Germany, Denmark, Luxembourg, Ireland, Italy, Spain and Austria to that of the respective indigenous population. The unit of analysis is the individual in the household ...

Private Savings and Transition: Dynamic Panel Data Evidence from Accession Countries

After the collapse in the early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. But is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. The main results are: saving rates are rather persistent; income growth increases saving, ...

Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005

European migration policies are characterised by a fundamental paradox: While the barriers for the free mobility of labour have been largely removed within the EU, the regulation of immigration from third countries remains in the domain of national policies of the individual Member States. During the last ten years, these policies have become more and more restrictive, although the public opinion has ...