nep-eec New Economics Papers
on European Economics
Issue of 2007‒09‒24
27 papers chosen by
Giuseppe Marotta
University of Modena and Reggio Emilia

  1. Convergence and Anchoring of Yield Curves in the Euro Area By Ehrmann, Michael; Fratzscher, Marcel; Gürkaynak, Refet S.; Swanson, Eric T
  2. The Maastricht inflation criterion : what is the effect of expansion of the European Union ? By John Lewis; Karsten Staehr
  3. Europe and Global Imbalances By Philip R. Lane; Gian Maria Milesi-Ferretti
  4. Does The Euro Have A Chance to Challenge The Dollar By Idil Goksel
  5. EU – ASEAN free trade area: regional cooperation for global competitiveness By Botezatu, Elena
  6. Growth accounting for the Euro area - a structural approach. By Tommaso Proietti; Alberto Musso
  7. An Ever Closer Union? Examining The Evolution Of The Integration Of European Equity Markets Via Minimum Spanning Trees By Claire G. Gilmore; Brian Lucey; Marian Boscia
  8. Creative Class and Regional Growth - Empirical Evidence from Eight European Countries By Ron A. Boschma; Michael Fritsch
  9. A robust multivariate long run analysis of European electricity prices By Bruno Bosco; Lucia Parisio; Matteo Pelagatti; Fabio Baldi
  10. Profit Shifting by Multinationals: Indirect Evidence from European Micro Data By Dischinger, Matthias
  11. The Role of Innovation in Merger Policy: Europe’s Efficiency Defence versus America’s Innovation Markets Approach By Elena Cefis; Mark Grondsma; Anna Sabidussi; Hans Schenk
  12. Trade and Revealed Comparative Advantage: Hungary, the Czech Republic, and the European Union By Kaitila , Ville
  13. International financial markets and fragility in the Eastern Europe: "can it happen" here? By Özlem Onaran
  14. Determinants of house prices in central and eastern Europe By Balázs Égert; Dubravko Mihaljek
  15. Circular Migration: Counts of Exits and Years Away from the Host Country By Constant, Amelie; Zimmermann, Klaus F
  16. Earnings Prospects for People with Migration Background in Germany By Aldashev, Alisher; Gernandt, Johannes; Thomsen, Stephan L.
  17. An Analysis of the Effects of the Severance Pay Reform on Credit to Italian SMEs By Riccardo Calcagno; Roman Kraeussl; Chiara Monticone
  18. Politique climatique et politique commerciale : <br />le projet français de taxe CO2 aux frontières de l’Europe By Michel Damian; Mehdi Abbas
  19. Ethnicity and obesity: evidence of implicit work performance stereotypes in Sweden By Jens, Agerström; Carlsson, Rickard; Rooth, Dan-Olof
  20. Does Consumption Respond to Predicted Increases in Cash-on-hand Availability? Evidence from the Italian “Severance Pay” By Margherita Borella; Elsa Fornero; Maria Cristina Rossi
  21. The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark By Michael Svarer
  22. Romania between the challenges of competitiveness and regional cohesion By Botezatu, Elena
  23. Les salaires des enseignants en France : une analyse transversale et comparative dans le cadre national By Alain Mingat; Bruno Suchaut
  24. Modelling Behavioural Responses to Profit Taxation: The Case of the UK Corporation Tax By John Creedy; Norman Gemmell
  25. Currency Boards in the Baltic Countries: What Have We Learned? By Korhonen , Iikka
  26. Evaluating the Performance of UK Research in Economics By Nicholas Vasilakos; Gauthier Lanot; Tim Worrall
  27. Ranking Dutch Economists By Ours, J.C. van; Vermeulen, F.M.P.

  1. By: Ehrmann, Michael; Fratzscher, Marcel; Gürkaynak, Refet S.; Swanson, Eric T
    Abstract: We study the convergence of European bond markets and the anchoring of inflation expectations in euro area countries using high-frequency bond yield data for France, Germany, Italy and Spain. We find that Economic and Monetary Union (EMU) has led to substantial convergence in euro area sovereign bond markets in terms of interest rate levels, unconditional daily fluctuations, and conditional responses to major macroeconomic data announcements. Our findings also suggest a substantial increase in the anchoring of long-term inflation expectations since EMU, particularly for Italy and Spain, which since monetary union have seen their long-term interest rates become much lower, much less volatile, and much better anchored in response to news. Finally, the reaction of far-ahead forward interest rates to macroeconomic announcements has converged substantially across euro area countries and even been eliminated over time, thus underlining not only market integration but also the credibility that financial markets attach to monetary policy in the euro area.
    Keywords: anchoring; bond markets; convergence; credibility; EMU; euro area; monetary policy
    JEL: E52 E58
    Date: 2007–09
  2. By: John Lewis; Karsten Staehr
    Abstract: Following the Maastricht criteria, a country seeking to join the European Monetary Union cannot have inflation in excess of 1.5 percent plus the average inflation in the three \"best performing\" EU countries. This inflation reference value is a non-increasing function of the number of EU members. Looking backwards, the effect of increasing the number of EU countries from 15 to 27 would have been sizeable in 2003 and 2004, but relatively modest since 2005. Monte Carlo simulations show that the expansion of the EU from 15 to 27 members reduces the expected inflation reference value by 0.15-0.2 percentage points, but with a considerable probability of a larger reduction. The treatment of countries with negative inflation in the calculation of the reference value has a major impact on the results
    Keywords: Maastricht Treaty, European Monetary Union, inflation, convergence
    JEL: E31 E42 E63
    Date: 2007–09–14
  3. By: Philip R. Lane; Gian Maria Milesi-Ferretti
    Abstract: Although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a shift in the current configuration of external deficits and surpluses. We assess the macroeconomic impact on Europe of global current account adjustment under alternative scenarios, emphasizing both trade and financial channels. Finally, we consider heterogeneous exposure across individual European economies to external adjustment shocks.
    Keywords: Financial integration, capital flows, external assets and liabilities
    Date: 2007–06–30
  4. By: Idil Goksel (Department of Economics, Izmir University of Economics)
    Date: 2007–08
  5. By: Botezatu, Elena
    Abstract: The recent interest shown by the European Union towards the countries in South-east Asia, as well as the initiatives for setting up free trade areas in the region, come to confirm the uneasiness that portrays the situation at home, as well as the efforts that it set out to make in order to maintain its competitiveness on a global scale. Particularly, the attention that the EU has given to bi-regional cooperation, initiating talks for a free trade area with ASEAN, rather than with its member countries, strengthens the belief that the EU is currently seeking to consolidate its position in South-east Asia and to counter the increasing influence of China and Japan.
    Keywords: European Union; regional cooperation; competitiveness; free trade area
    JEL: F59
    Date: 2007–05–25
  6. By: Tommaso Proietti (European Central Bank, Kaiserstraße 29, 60311 Frankfurt, Germany.); Alberto Musso (European Central Bank, Kaiserstraße 29, 60311 Frankfurt, Germany.)
    Abstract: This paper is concerned with the estimation of euro area potential output growth and its decomposition according to the sources of growth. The growth accounting exercise is based on a multivariate structural time series model which combines the decomposition of total output according to the production function approach with price and wage equations that embody Phillips type relationships linking inflation and nominal wage dynamics to the output gap and cyclical unemployment, respectively. Assuming a Cobb-Douglas technology with constant returns to scale, potential output results from the combination of the trend levels of total factor productivity and factor inputs, capital and labour(hours worked), which is decomposed into labour intensity (average hours worked), the employment rate, the participation rate, and population of working age. The nominal variables (prices and wages)play an essential role in defining the trend levels of the components of potential output, as the latter should pose no inflationary pressures on prices and wages. The structural model is further extended to allow for the estimation of potential output growth and the decomposition according to the sources of growth at different horizons (long-run, medium run and short run); in particular, we propose and evaluate a model–based approach to the extraction of the low–pass component of potential output growth at different cutoff frequencies. The approach has two important advantages - the signal extraction filters have an automatic adaptation property at the boundaries of the sample period, so that the real time estimates do not suffer from what is often referred to as the ”end–of–sample bias”. Secondly, it is possible to assess the uncertainty of potential output growth estimates with different degrees of smoothness. JEL Classification: C32, C51, E32, O47.
    Keywords: Potential output, Output gap, Euro area, Unobserved components, Production function approach, Low-pass filters.
    Date: 2007–08
  7. By: Claire G. Gilmore; Brian Lucey; Marian Boscia
    Abstract: The concept of a minimum spanning tree (MST) is used to study the process of comovements for 21 European Union stock market indices. We show how the asset tree and its related hierarchical tree evolve over time and describe the dynamics. Over the period studied, 1999-2006, the French equity market provides the main linkages in the system. The 2004 Accession states are more loosely connected to the other markets; they form two groupings, with the Czech Republic, Hungary, and Poland having tighter links to the main markets than the remaining accession markets. The consequence for global investors is a potential reduction of the benefits of international portfolio diversification in European markets, with the possible exception of those markets at the outer limits of the MST.
    Keywords: Minimum Spanning Tree, Equity Market Integration, Europe, Econophysics
    Date: 2007–06–13
  8. By: Ron A. Boschma (Utrecht University, Department of Economic Geography, Utrecht, Netherlands); Michael Fritsch (Friedrich Schiller University Jena, German Institute of Economic Research, Berlin, and Max Planck Institute of Economics, Jena, Germany)
    Abstract: We analyze the regional distribution and the effect of people in creative occupations based on data for more than 450 regions in eight European countries. The geographic distribution of the creative class is highly uneven. The creative class is not attracted to highly urbanized regions per se, but rather a climate of tolerance and openness seem to be rather important factors. We find that the creative class has a positive and significant effect on employment growth and new business formation at the regional level. Human capital as measured by creative occupation outperforms indicators that are based on formal education.
    Keywords: Creativity, innovation, entrepreneurship, regional development
    JEL: O31 O18 R12
    Date: 2007–09–17
  9. By: Bruno Bosco; Lucia Parisio; Matteo Pelagatti; Fabio Baldi
    Abstract: This paper analyses the interdependencies existing in wholesale electricity prices in six major European countries. The results of our robust multivariate long run dynamic analysis reveal the presence of four highly integrated central European markets (France, Germany, the Netherlands and Austria). The trend shared by these four electricity markets appears to be common also to gas prices, but not to oil prices. The existence of long term dynamics among electricity prices and between electricity prices and gas prices may prove to be important for long term hedging operations to be conducted even in countries where well established and liquid electricity derivatives markets are not present. Since standard unit root and cointegration tests are not robust to the peculiar characteristics of electricity prices time series, we adapt and further develop a battery of robust inference procedures that should assure the reliability of our results.
    Keywords: European electricity prices, Cointegration, Interdependencies, Equilibrium Correction model, Oil prices, Robustness
    JEL: C15 C32 D44 L94 Q40
    Date: 2007–09
  10. By: Dischinger, Matthias
    Abstract: We provide indirect empirical evidence of profit shifting behavior by multinational enterprises. This issue is analyzed in an econometric panel study for the years 1995 to 2005 and additionally in a cross-section for 2004 using a large micro database of European subsidiaries of multinationals (AMADEUS) which includes detailed balance sheet items. Our results show a decrease in the unconsolidated pre-tax profits of an affiliated company of approximately 7% if the difference in the statutory corporate tax rate of this affiliate to its parent increases by 10 percentage points. Various robustness checks support our profit shifting evidence. Furthermore, the results suggest an overall shift of profits out of the European Union. In addition, we provide evidence that a higher parent's ownership share of its subsidiary leads to intensified profit shifting behavior.
    Keywords: corporate taxation; multinational enterprise; tax planning; profit shifting; micro level data; panel econometrics
    JEL: H25 H26 F23 C33
    Date: 2007–09
  11. By: Elena Cefis; Mark Grondsma; Anna Sabidussi; Hans Schenk
    Abstract: Changes in the world’s economies and discussions in the literature about the growing importance of innovation to firms have given rise to a demand for expanding the analysis of merger policy. The present study focuses on the different criteria used to assess the impact of M&A activities on innovation. The analysis is both theoretical and empirical. From a theoretical perspective, two main approaches are discussed: the efficiency defence approach, adopted in Europe, and the innovation markets doctrine as developed in the United States. The present paper contributes to the literature by suggesting that an integration of the two approaches would significantly improve M&A assessment. On the empirical side, two cases that have been scrutinised by both the European Commission and the U.S. Federal Trade Commission are discussed. The results show the relevance of the different approaches used when dealing with innovation in the assessment of mergers.
    Keywords: Mergers and Acquisitions, Innovation, Efficiency Defence
    JEL: C14 D21 L11 L25
    Date: 2007–09
  12. By: Kaitila , Ville (BOFIT)
    Abstract: This study analyses the trade of Hungary and the Czech Republic with the European Union in 1997. After a general introduction, the focus turns to the extent of intra-industry trade (IIT) and its horizontal and vertical components. The extent of IIT is also analysed in light of the flows of foreign direct investment (FDI) from the European Union to Hungary and the Czech Republic. This is followed by an analysis of revealed comparative advantage (RCA) in trade between the EU and the two Central European countries. The CN4-digit trade data is divided into two groups according to whether a country enjoys a revealed comparative advantage in a given market area or not. Statistical tests are performed to determine the extent to which the RCA structures of each pair of countries are dependent. The analysis also takes into account the volumes of trade flows.
    Keywords: revealed comparative advantage; intra-industry trade; Hungary; Czech Republic; EU
    Date: 2007–09–14
  13. By: Özlem Onaran (Department of Economics, Vienna University of Economics & B.A.)
    Abstract: The aim of this paper is to analyze the fragility of the New Member States and accession countries in the Central Eastern and South Eastern European countries (henceforth Eastern Europe) to the turbulences in the global economy and the changes in the direction of the international capital flows.
    JEL: E12 G15 G32 O52
    Date: 2007–09
  14. By: Balázs Égert; Dubravko Mihaljek
    Abstract: This paper studies the determinants of house prices in eight transition economies of central and eastern Europe (CEE) and 19 OECD countries. The main question addressed is whether the conventional fundamental determinants of house prices, such as GDP per capita, real interest rates, housing credit and demographic factors, have driven observed house prices in CEE. We show that house prices in CEE are determined to a large extent by the underlying conventional fundamentals and some transition-specific factors, in particular institutional development of housing markets and housing finance and quality effects.
    Keywords: House prices, housing market, transition economies, central and eastern Europe, OECD countries
    Date: 2007–09
  15. By: Constant, Amelie; Zimmermann, Klaus F
    Abstract: The economic literature has largely overlooked the importance of repeat and circular migration. The paper studies this behaviour by analyzing the number of exits and the total number of years away from the host country using count data models and panel data from Germany. More than 60% of migrants from the guestworker countries are indeed repeat or circular migrants. Migrants from European Union member countries, those not owning a dwelling in Germany, the younger and the older (excluding the middle ages), are significantly more likely to engage in repeat migration and to stay out for longer. Males and those migrants with German passports exit more frequently, while those with higher education exit less; there are no differences with time spent out. Migrants with family in the home country remain out longer, and those closely attached to the labour market remain less; they are not leaving the country more frequently.
    Keywords: circular migration; count data; guestworkers; minorities; repeat migration
    JEL: C25 F22 J15 J61
    Date: 2007–08
  16. By: Aldashev, Alisher; Gernandt, Johannes; Thomsen, Stephan L.
    Abstract: Less than half of the people with migration background living in Germany possess foreign citizenship. Hence, using citizenship to analyze economic issues of immigration may be problematic for two reasons. On the one hand, a quite substantial share of persons with migration background is neglected in the group of interest, and, on the other hand, the reference group (native Germans) may be contaminated by effects from naturalized immigrants. This paper utilizes a wider definition covering all persons with migration background to analyze the earnings prospects. To shed light on differences to the common use of citizenship, estimates are presented in comparison to foreigner and German citizens. The results show that persons with migration background have similar earnings prospects to foreigners. Moreover, earnings prospects for native Germans do not differ much from those of German citizenship. Therefore, using citizenship to approximate natives and non- natives when analyzing earnings issues seems to be reasonable. A second question of the paper is whether degrees obtained in Germany lead to better earnings prospects compared to degrees obtained abroad for persons with migration background. Independently of gender and skill level, the estimates affirm higher earnings to educational attainment in Germany.
    Keywords: Migration background, earnings prospects, education, Germany
    JEL: I12 J15 J61
    Date: 2007
  17. By: Riccardo Calcagno (Free University and Tinbergen Institute, Amsterdam; CeRP, Turin); Roman Kraeussl (Free University of Amsterdam and Center for Financial Studies, Frankfurt am Main); Chiara Monticone (CeRP, Collegio Carlo Alberto, Turin)
    Abstract: In this paper we study the effects of the reform of the system of severance indemnities (TFR) currently in use for Italian employees on the cost and the access to credit for Italian small and medium-size enterprises (SMEs). The most direct consequence of the reform will be to reduce the amount of liquid assets available to Italian firms. We argue that this reform, which will produce its first effects in July 2007, will reduce the aggregate investment by SMEs in a more than proportional way in a long run, since it will restrict the access to credit for some of them (Holmstrom and Tirole, 1997). However, we also predict that the reform will not increase the cost of intermediated finance in the long run, coeteris paribus. Nonetheless, in the short-term, if the level of investment by firms can be considered as exogenous, the reform is likely to increase the cost of bank credit for SMEs. In order to perform quantitative estimates of the effect of the reform, we also estimate the future outflows of TFR from the balance sheet of the firms from data covering the whole population of Italian firms.
    Keywords: severance indemnities, moral hazard, credit constraints
    Date: 2007–04
  18. By: Michel Damian (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]); Mehdi Abbas (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II])
    Abstract: L’article analyse la faisabilité de la taxe carbone aux frontières de l’Europe proposée par le Gouvernement français. L’objectif est d’éviter les distorsions de concurrence à l’encontre des industries européennes qui subissent le coût du Protocole de Kyoto et d’inciter les grands concurrents de l’Europe à rejoindre celui-ci. Les positions jusque-là exprimées divergent principalement sur la compatibilité d’une telle taxe avec les règles de l’OMC. Sans présager de l’issue d’une action devant son Organe de règlement des différends, l’article considère que le problème se situe moins dans la faisabilité technique ou les règles du commerce multilatéral que dans la détermination collective à diminuer drastiquement les émissions de gaz à effet de serre. Le projet français est donc un test des volontés politiques en matière de politique climatique après l’échéance du Protocole de Kyoto en 2012. L’article analyse les grandes orientations des prochaines négociations.
    Date: 2007–09–19
  19. By: Jens, Agerström (Department of psychology, Lund University); Carlsson, Rickard (Department of economics, Kalmar University); Rooth, Dan-Olof (Department of economics, Kalmar University)
    Abstract: Using the Implicit Association Test, we investigate whether employers and students possess implicit and explicit negative attitudes and implicit performance stereotypes toward Arab-Muslim men relative to native Swedish men. We also examine if employers and students have implicit and explicit performance stereotypes toward obese individuals relative to people of normal weight. The results demonstrate that employers and students both implicitly and explicitly associate Arab-Muslim men with less work performance. Also, they have more implicit negative attitudes toward this ethnic group. Obese individuals are both implicitly and explicitly associated with less work performance compared with normal-weight individuals.
    Keywords: Implicit; attitudes; stereotypes; discrimination; ethnicity; obesity
    JEL: J53 J64 J71
    Date: 2007–08–31
  20. By: Margherita Borella (University of Turin and CeRP, Collegio Carlo Alberto, Turin); Elsa Fornero (University of Turin and CeRP, Collegio Carlo Alberto, Turin); Maria Cristina Rossi (Università di Roma, Tor Vergata and CeRP, Collegio Carlo Alberto, Turin)
    Abstract: This paper aims at detecting whether Italian households exhibit excess sensitivity in their consumption with regard to “severance pay”, a sizable, expected lump sum that workers receive at either retirement or whenever they leave their job for whatever reason. One of the implications of the life-cycle hypothesis is that consumption does not react when expected income changes are realized, as these are already incorporated by consumers into their (intertemporal) budget constraint. Should consumers exhibit a reaction to anticipated income changes this would be in contrast to one of the main implications of the life cycle hypothesis. Our analysis exploits a rotating panel data set of Italian households, the Survey of Household Income and Wealth (SHIW), for the years starting from 1989 to 2004. By using an Euler equation approach on different categories of consumption we estimate whether close to retirement households exhibit excess sensitivity of consumption with respect to severance pay.Our findings suggest that households do not alter their non-durable goods consumption while they increase their durable consumption in the year when they cash their severance pay.
    Date: 2007–06
  21. By: Michael Svarer (University of Aarhus, CAM and IZA)
    Abstract: This paper investigates the effect of sanctions of unemployment insurance benefits on the exit rate from unemployment for a sample of Danish unemployed. According to the findings are that even moderate sanctions have rather large effects. For both males and females the exit rate increases by more than 50% following imposition of a sanction. The paper exploits a rather large sample to elaborate on the basic findings. It is shown that harder sanctions have a larger effect, that the effect of sanctions wear out after around 3 months and that particular groups of unemployed are more responsive to sanctions than others. Finally, the analysis suggests that men react ex ante to the risk of being sanctioned in the sense that men who face higher sanction risk leave unemployment faster.
    Keywords: sanctions, unemployment hazard
    JEL: J6 C41
    Date: 2007–08
  22. By: Botezatu, Elena
    Abstract: Even if Romania succeeded to become a member of the European Union, the development gaps between its regions and those in the other member states continue to be significant. The paper will focus on analyzing the regional disparities in Romania, in terms of GDP/capita, FDI and possibly state interventions, with the view of creating a so-called typology of “winners and losers”. After determining the winners and losers, a brief description will follow, underlining the key aspects that differentiate them from the other regions. Next, the paper will discuss some aspects related to the future perspectives for regional development in Romania, taking into account the perspective of reform at European level and discussions that are currently developing, related to trade-off between equity and efficiency, between cohesion and competitiveness. The last part of the paper will focus on providing a possible answer for the future of regional development, by analyzing the investment in research and innovation and the impact it could have in Romania.
    Keywords: regional development; cohesion; catching up; regional disparities
    JEL: R11
    Date: 2007–09
  23. By: Alain Mingat (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : UMR5225] - [Université de Bourgogne]); Bruno Suchaut (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : UMR5225] - [Université de Bourgogne])
    Abstract: Sur la base de l'enquête emploi 2005 de l'INSEE, ce texte expose une analyse des salaires des enseignants français du secteur public. Il s'agit d'examiner la<br />question de la rémunération d’une manière relative en mobilisant des fonctions de gains classiques de Mincer. En moyenne, les rémunérations des enseignants du<br />public sont équivalentes à celles des salariés du privé possédant la même expérience professionnelle et le même niveau de diplôme. En revanche, des disparités notables se manifestent quand on prend en compte le genre et le niveau d’enseignement dans la fonction exercée. Au niveau de l’enseignement primaire, les hommes apparaissent particulièrement désavantagés avec une perte relative de près de 15% de salaire en référence aux salariés du privé, alors que les femmes possèdent, quant à elles, un avantage relatif de l'’ordre de 4%. Une structure comparable, mais avec des ordres de grandeur différents, est observée pour l’'enseignement secondaire avec respectivement un gain salarial relatif de 11% pour les femmes et une perte relative de 6% pour les hommes.
    Keywords: Salaire ; Enseignant ; France
    Date: 2007–09–19
  24. By: John Creedy; Norman Gemmell
    Abstract: This paper examines behavioural responses by companies to changes in profit taxation in their home country. It argues that as well as distinguishing real from shifting responses for profits, it is important to separate the responses of gross profits from those for deductions (such as claims for past or current losses) where these are endogenously related to gross profits declared at home. This occurs in the UK and many other corporate tax regimes. This endogenous response can be expected to differ over the business cycle and, using a microsimulation model of the UK corporate tax regime, it is shown that this can be important for empirical estimates of firms’ overall behavioural responses especially, but not exclusively, during cyclical downturns. It is shown also that endogenous responses of deductions to real or shifting responses for gross profits can be expected to be asymmetrical between periods of above- and below-trend growth.
    Date: 2007
  25. By: Korhonen , Iikka (BOFIT)
    Abstract: Straightforward exchange rate arrangements known as currency boards have gained popularity during the past dec-ade. Among transition economies, Estonia first introduced a currency board in 1992, followed by Lithuania in 1994 and Bulgaria in 1997. Currency boards have been useful in achieving macroeconomic stabilization, and they may have helped the Baltics become the first countries of the former Soviet Union (FSU) to achieve economic growth after the slump in production of the early 1990s. Moreover, Baltic inflation performance has been substantially better than in other FSU countries. Both in Estonia and Lithuania, the present exchange rate system has been ac-companied by strong real appreciation of the currency. Both in Estonia and Lithuania the present exchange rate system has been accompanied by strong real appreciation of the currency, although it is widely accepted that the currencies were very much undervalued at the beginning of their pegs. However, if rapid real appreciation is ac-companied with increases in the labor productivity, the present pegs can be maintained. Banking crises in Estonia and Lithuania have not been particularly severe, so apparently rigid currency pegs have not been accompanied by excessive financial sector instability. The tight fiscal policies pursued in both countries, especially Estonia, have been instrumental to the success of these currency board arrangements.
    Keywords: exchange rate; currency board; Baltic countries
    JEL: E50 E60 P20
    Date: 2007–09–14
  26. By: Nicholas Vasilakos (Economics, Keele University); Gauthier Lanot (Keele University, Department of Economics); Tim Worrall (Economics, Keele University)
    Abstract: This paper reports on available bibliometric evidence on the performance of UK research in economics. It examines some standard and non-standard sources of bibliometric evidence and in particular evidence from the ISI and EconLit databases and the Repository of Papers in Economics (RePEc). It also reports on research capacity of UK economics and some non-bibliometric sources of evidence.
    Keywords: Research evaluation, bibliometrics.
    JEL: A10 I23
    Date: 2007–07
  27. By: Ours, J.C. van; Vermeulen, F.M.P. (Tilburg University, Center for Economic Research)
    Abstract: This paper ranks Dutch economists using information about publications and citations. Rankings involve the aggregation of several performance dimensions. Instead of using a cardinal approach, where each dimension is weighted based on impact factors of journals for example, we use an ordinal approach which accounts for quality differences between journals and also takes citations into account. We find that this ordinal approach is more robust. Based on the ordinal ranking of publications and citations we find that Peter Wakker is the most productive economist, followed by Michel Wedel. The third place in the ranking is ex aequo for Philip-Hans Franses and Florencio Lopez de Silanes. Adding-up the individual output we find that the economists of Erasmus University Rotterdam are the most productive, followed ex aequo by Tilburg University and Free University Amsterdam.
    Keywords: Productivity of economists;ranking
    JEL: A11 J24
    Date: 2007

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