In this paper, we study the growth effects of the 2004 Eastern enlargement of the European Union (EU) using the synthetic control method. We estimate that this EU enlargement had an immediate but modest positive impact on the economic growth of the EU-8 countries in the first few years following...

Objective: The article aims to evaluate the growth effects of the 2007 Eastern enlargement of the European Union (EU) for the New Member States (NMS). Research Design & Methods: To study the growth effects of the 2007 Eastern enlargement we apply the synthetic control method (SCM). The synthetic...

We study the effect of sentiment shocks, changes in confidence that are not related to the fundamentals, on the economy in the long run. We find that output, consumption, and productivity permanently increase in response to a sentiment shock. This finding implies that the changes in consumer...