This is a report on an updated version of the KTKV-model of Bank of Finland's Economics Department. The model was originally designed in the early 80's for the forecasting of short-term international economic developments. It is basically a world trade flow model, in which the main components of...

In this paper the reasons for revisions of announced investment plans are analyzed theoretically and empirically. In earlier studies by the author it was shown that investment plans and final investments differ systematically from each other. The theoretical framework is based on neoclassical...

This paper is an extension of earlier studies by the writer on the influence of innovations on investment plans.It examines the effects of a change in the financial market regime on the revision of investment plans.The innovations in economic data were measured with the error terms of the VAR...

This paper deals with the question of whether the euro area Phillips curve is nonlinear.There has recently been a great deal of discussion and studies concerning the same question in the US context.The data set includes most of the euro area countries, namely Austria, Germany, Finland, France,...

This paper builds on the literature on growth in searching for explanations for the divergent growth performance between the EU countries and the United States.We emphasise the role of R&D investment and perhaps different degrees of elasticity of substitution between capital and labour.We...