This paper aims to illustrate how a Mixed-Cross-Section Global Vector Autoregressive (MCS-GVAR) model can be set up and solved for the purpose of forecasting and scenario simulation. The application involves two cross-sections: sovereigns and banks for which we model their credit default swap...

The article investigates the interrelations between the initial members of the Euro area and five Central and Eastern European economies.Structural vector error correction approach, theoretically derived restrictions on the cointegration matrix, generalized impulse response analysisHigh degree...

This study aims to analyse the impact of increased ICT R&D public spending on the European economy using the regional RHOMOLO model. The theoretical motivation for this research stems from ongoing discussion on the complementarity and substitutability between public and private R&D spending, and...

This paper deals with the impact of outsourcing from the EU27 to high and low income countries (defined as aggregates from the WIOD database) on employment demand and simultaneously on energy demand and air emissions. The analysis is based on a model of production (Translog cost function and...

We apply Bayesian Model Averaging procedures to a dataset on growth to estimate the output gap caused by the recent financial crisis. The special focus of this work lies in group of variables that may simultaneously cause countries to behave differently during episodes of economic recessions. In...

Ageing societies influence the development of industrialised countries. A changing age composition of the population not only affects pension and social security systems but also infrastructure, housing market, available workforce and consumption pattern. Though the process proceeds only slowly,...

Ireland is (together with Greece and Portugal) a euro-zone country, which is receiving financial assistance. It is conditional on acceptance of recommendations of common experts groups of European commission, European central bank and International monetary fund. Macroeconomic stabilization...

The puzzle of Feldstein and Horioka (1980) stems from the early eighties: the authors identified the correlation between a country's savings-to-GDP and investment-to-GDP ratio as a measure of international capital mobility. By using a cross-section analysis they concluded that the long-awaited...

In this paper, we develop a structural macro econometric model for Turkey, to assess the role of structural characteristics of an emerging economy on macroeconomic indicators. In this model, standard macroeconomic policy results are observed as the target levels and actual levels. Technically,...