The following article uses a production function approach to analyse the long-term trends of the European growth potential. It describes the possibility of a further significant decline in the potential growth rate and the mechanisms of this decline. EU Member States are divided into five...

With respect to the recently ratified economic stimulus package in Germany, it is fundamentally important to observe whether the expansion of physical infrastructure will further contribute to economic growth. This paper presents a way to address the problem of endogeneity using panel data on 16...

A large number of governments in all regions of the world have recognised the need for paid sick leave although the benefi t schedules vary widely. International data show that the incidence of paid sick leave is closely associated with overall economic developments. What are the patterns of...

Together with a strong emphasis on deep integration, the main thrust of the EU's new trade strategy as announced in October 2006 is competitive regionalism, i.e. the competition between different jurisdictions which seek strategic advantages for themselves through the conclusion of bilateral...

"Natural rate theory" - the application of the efficient market hypothesis to labour markets has guided economic policy since the 1970s and laid the foundations for the design of major European institutions in the 1990s. Unfettered markets were declared to be stable, and consequently public...

Positive spillovers from structural and other reforms figure among the key reasons for the Lisbon and the Europe 2020 Strategies. This paper investigates the theoretical and empirical evidence for such spillovers and shows that the need for coordination in some policy areas is less evident than...