We investigate factors of total factor productivity (TFP) interdependencies in a sample of 19 OECD countries for the period 1981-2009. Rolling cointegration relationships are estimated between TFP's level in order to measure productivity interdependencies across countries and over time. Besides...

The Stability and Growth Pact (SGP) in EMU urges governments to achieve a position close to balance or surplus over the medium term. So far, the fiscal framework has successfully contributed to the EMU public financial sustainability and may have contributed to financial stability, as well as to...

The Stability and Growth Pact (SGP) in EMU urges governments to achieve a position close to balance or surplus over the medium term. So far, the fiscal framework has successfully contributed to the EMU public financial sustainability and may have contributed to financial stability, as well as to...

Are fiscal rules able to make fiscal policies more effective? On the one hand, fiscal rules can reduce the risk of debt crises and, more generally, they can make fiscal policy more legible. On the other hand, explicit deficit ceilings can thwart the stabilising effect of changes in fiscal...

Purpose: Following the theoretical literature on growth model with externalities, the chapter aims at finding empirical evidence of the main sources of economic interdependencies in Europe. Methodology/approach: A two-step econometric procedure is adopted. In the first step, in order to evaluate...

We extend the analysis of Ball (2000) on near-rational expectations. We show that near-rational expectations imply nontrivial additional forecast errors and the degree of error depends on the monetary regime. Moreover, this scheme of expectations does not by itself give support to the New...