In multilevel modelling, interest in modeling the nested structure of hierarchical data has been accompanied by increasing attention to different forms of spatial interactions across different levels of the hierarchy. Neglecting such interactions is likely to create problems of inference, which...

In this editorial we summarise and comment on papers published in issue 9.1. The first paper is by Raffaele Paci, Emanuela Marrocu and Stefano Usai 'The Complementary Effects of Proximity Dimensions on Knowledge Spillovers'. Second, we have the paper by Karyn Morrissey, Cathal O'Donoghue and...

In this editorial we summarise and comment on papers published in issue 8.4. The first paper is by Frederick Guy, entitled 'Small, Local and Cheap? Walkable and Car-oriented Retail in Competition'. Secondly we have the paper by Nicola Francesco Dotti, Ugo Fratesi, Camilla Lenzi & Marco Percoco...

In this editorial, we summarize and comment on the papers published in Issue 9.3. The first paper is entitled 'The Magnitude and Distance Decay of Trade in Goods and Services: New Evidence for European Countries', by Martin J. Burger, Mark J. P. M. Thissen, Frank G. Van Oort and Dario Diodato....

In this paper we examine the spatial and temporal distribution of per capita income across Europe. We base our analysis on a cluster methodology which allows for an endogenous selection of regional clusters using a multivariate test for stationarity where the number and composition of clusters...

We re-connect money to in.ation using Goodfriend and McCallum's (2007) model where banks supply loans to cash-in-advance constrained consumers on the basis of the value of collateral provided and the monitoring skills of banks. We show that when shocks to monitoring and collateral dominate those...

Optimal nominal interest rates rule are usually set assuming that the underlying world is linear. Our work relaxes this assumption and examines the performance of optimal rules when non-linearities are present. In particular if the inflation-output trade off exhibits non linearities...

Asset mis-pricing may reflect investor psychology, with excess volatility arising from switches of sentiment. For a floating exchange rate where fundamentals follow a random walk, we show that excess volatility can be generated by the repeated entry and exit of currency `bulls' and `bears' with...

There is a strong need to complement the analysis of social well-being at the European regional level to supplement existing, predominantly economic analysis. This work extends the measurement of well-being across the EU-15 regions in several ways. First, we assess the determinants of well-being...

Forward looking agents with expectational errors provide a problem for monetary policy. We show that under such conditions a standard interest rate rule may not achieve determinacy. We suggest a modification to the standard policy rule that guarantees determinacy in this setting, which involves...