The performance of alternative fiscal rules is examined in an endogenous growth model. The government spends money on infrastructure, maintenance, and health. Infrastructure affects the production of both commodities and health services. The performance of a balanced budget rule, as well as...

The aim of this paper is to study whether corruption spreads across neighboring countries. Spatial econometric techniques are used to analyze corruption interactions, testing whether the perception of corruption in neighboring countries affect a country's own corruption once other variables are...

This paper analyzes how subnational governments allocate own resources between current spending and infrastructure investment and decide on borrowing under the expectation of federal bailouts. It is assumed that states' borrowing possibilities increase with the expectation of such bailouts...

This paper assesses the restructuring of the Spanish electric power sector by analysing the performance of electric companies. To this end, we jointly analyse the creation and decomposition of the economic value generated by them before and after the reform, and its distribution among firms'...

We investigate the effects of ethnic diversity on economic growth in the People's Republic of China. Based on provincial data from 1982 to 2007, we find a negative relationship between ethnic diversity and economic growth across Chinese provinces supporting existing cross-country studies such as...

Optimal Currency Area theory stresses the importance of the co-movement of business cycles among Eurozone member states for a successful common currency. In this paper, we show how to decompose economic cycles in a time-frequency framework in order to compare the coherences and phase shifts for...

This paper studies the impact of migration policy liberalisation on international labour migration in the enlarged European Union (EU) in a structural economic geography approach. The liberalisation of migration policy would induce an additional 1.80-2.98% of the total EU workforce to change...

China has been rapidly increasing the exports of manufactured products to OECD markets. In this paper we obtain evidence that the rise of China decreases the export market shares of OECD countries in other OECD markets. We also assess strategies of OECD countries to respond to increasing Chinese...

The ability to predict business cycle activity is an invaluable skill for governments and policy makers alike, especially before an economy enters a downturn. We analyse causality relationships between key leading economic indicators and economic growth for three countries from 1970 to 2010. We...