In this study, we analyse variation of markups in Finnish industrial sectors, both between industries and over time. The study finds evidence that: - Since the beginning the 1980s, practically every Finnish industrial sector has been able to extract a positive markup. - The average industrial...

It has become a conventional wisdom in economic policy debate that in order to minimise adverse effects on employment, unemployment benefits should decrease with the unemployment spell. This paper, using a series of simple search models, shows that the theoretical result regarding the optimality...

In this paper we analyse the empirical relevance of the mechanisms through which the Bank of Finland's actions are transmitted to the Finnish economy. We concentrate on the first stage of the monetary policy transmission mechanism; namely, the effect of the Bank's actions on domestic market...

The objective of this paper is to empirically analyze and quantify the effect of changes in the supply of bank credit on private investment. Particular interest is placed on the role of the credit crunch in explaining the collapse in private investment in the early 1990s. Using a vector...

The possible participation of Finland in the Stage III of the European Monetary Union would constitute a major change in the operating environment of the Finnish economy. As a member of the common currency area, Finnish interest and exchange rates would no longer be determined by domestic...

This study of markups, ie prices over marginal costs in manufacturing industries, builds on the work of Robert Hall and Werner Roeger. We analyze several methods used in estimating sectoral markups, and then apply them to empirical analysis of the industrial sectors of six EU countries (Germany,...

The median age of the global population is presently increasing by nearly three months every year. Over the next couple of decades, almost every country in the world is set to experience an unprecedented increase in the share of elderly population. This development has the potential to...

This paper seeks to contribute to our understanding of the dynamic effects of trade, especially from a developing country's point of view. A model is constructed, in which a continuum of goods is produced using labor and human capital in different proportions. It is then examined how opening up...

The advent of EMU inspired a large literature searching for differences in the monetary policy transmission among European countries. Stylised facts seemed to arise, classifying the countries as having either rapid or slow transmission. Our paper takes a comprehensive look at the existing...

Central securities depositories (CSDs) have opened mutual links, but most of them are seldom used. Why are idle links established? By allowing a foreign CSD to offer services through the link the domestic CSD invites competition. The domestic CSD can determine the cost efficiency of the rival by...