In a setting where heterogeneous jurisdictions share a common policy, an increase in volatility breaks unanimous support for the status-quo and may prompt a subset of jurisdictions to favor either deepening the agreement through a fiscal union, or revert to autarky. A reassignment of political...

Reserves are playing each time a more important role due to the massive penetration of renewable energy sources nowadays. Operating reserves must be used for unforeseen events. All predictable events must be directly considered in the scheduling stage otherwise there will be an inefficient and...

The recent crisis has emphasized the role of financial - macroeconomic interactions, and international trade in goods and services, in the transmission of the shocks. Both phenomena, closely related to the higher degree of globalization, are very relevant for small open economies, and...

The European Union (EU) external cooperation in the migration field has been mostly developed in Eastern Europe. Indeed, the EU migration cooperation with Russia and Eastern Partnership countries has so far had outcomes in the Number areas of readmission, visas, border management and even labour...

In the wake of the 2008 financial crisis, taxation of the financial sector has forcefully re-emerged on the European Union political agenda. One proposal – rightly or wrongly – received much political attention: a broad-based tax on financial transactions. What had for years existed as a...

In a setting where heterogeneous jurisdictions share a common policy, an increase in volatility breaks unanimous support for the status-quo and may prompt a subset of jurisdictions to favor either deepening the agreement through a fiscal union, or revert to autarky. A reassignment of political...

In this paper we lay out a two-region DSGE model of an open economy within theEuropean Monetary Union. The model, which is built in the New Keynesian tradition,contains real and nominal rigidities such as habit formation in consumption, price andwage stickiness as well as rich stochastic...

This paper describes how limited liability leads to risk-loving behaviour in nuclear power companies and unsafe nuclear power plants. By reviewing current regulatory regimes, we show that this Number is not being sufficiently addressed today. Therefore, we evaluate five regulatory instruments:...

Should South-Mediterranean economies continue their financial integration in the world economy, considering their current stance and in view of the experiences of developed economies with the global financial crisis? The economies of the North-African rim, that is Morocco, Algeria, Tunisia,...

The liberalization of the natural gas industry has been based on the idea that infrastructure may be used by different gas owners. Different players using the same resources can give raise to 'commons dilemmas', which are defined by a conflict between individual rationality and group...