unique equilibrium path of bank and financial market lending. Yet we also show that economies whose fundamental … costly in our model, economies that emphasize financial market lending are more likely to continue doing so in the future …

We study the convergence of European bond markets and the anchoring of inflation expectations in euro area countries …) has led to substantial convergence in euro area sovereign bond markets in terms of interest rate levels, unconditional … substantially across euro area countries and even been eliminated over time, thus underlining not only market integration but also …

are signs that market reforms also boosted efficiency, whereas the role of reallocation of production factors towards more …

-capita output convergence across a large sample of European regions during the period 1995-2005. We find that net fiscal transfers …, while achieving regional redistribution, seem to impede output growth and promote an “immiserising convergence”: output …

particular emphasis on the impact of productivity convergence and effects of timing of trade and financial liberalization on the … convergence patterns. We compare the mechanisms behind the three investment margins (horizontal investment to new varieties …

prices and to some extent by product market regulations. In a cointegrating framework we find that the price level of each …