Stochastic simulations are used on the Liverpool Model of the UK to assess the effect of UK euro entry on macroeconomic stability. Instability increases substantially, particularly for inflation and real interest rates. A key factor is the extent of the euro's instability against the dollar; by...

The Asia-Pacific Economic Cooperation (APEC) has the potential to become the world's largest free trade area, encompassing both developed and developing countries. At the same time, environmental standards vary substantially in the region. A multilateral computable general equilibrium (CGE)...

A few years after the introduction of the Amato and Dini laws, a renewed debate on reforming the Italian pension system and on modifying its structure and technical parameters is taking place. The present work simulates individual reactions to systemic changes, distinguishing among the different...

This report describes an assessment of the projected future impacts of climate change, land use change and changes in water consumption on water resources for the European continent, as obtained using JRC's LISFLOOD water resources model. For this study, two 30-year climate windows were...

The economic and fiscal outlook has recently improved for European economies, raising the odds that high public debts inherited from the crisis will be gradually wound down in line with EU fiscal rules. This will however take time and future debt trajectories remain exposed to significant...

Restricting or eliminating the use of atrazine in the Midwest would have important economic consequences for farmers, consumers, and the environment. These consequences can only be evaluated with cooperation between economists and weed scientists. The weed control choice set available to farmers...

More than a third of the EU budget is devoted to Cohesion Policy with the objective to foster economic and social cohesion in the European Union. Large-scale fiscal transfers are used to support investment in infrastructure, R&D and human capital. This paper provides a modelbased assessment of...

This paper describes a micro-founded DSGE model with endogenous growth that is used to analyse the macroeconomic impact of structural reforms in Europe. The new QUEST III model is a useful tool for analysing the costs and benefits of reforms in terms of concrete and quantifiable policy measures,...

This paper describes the National Institute of Economic and Social Research's (NIESR) approach to the analysis of the implementation of the Lisbon Agenda. It forms the background to the European Commission Competitiveness Report chapter on spillovers and the Lisbon Process. The paper describes...

We examine the welfare effects of R&D subsidies using a product cycle model of trade between two developed countries. We simulate steady-state welfare in Japan and the U.S. for high- and low-skilled labor over different combinations of subsidy rates. Japanese subsidies to R&D usually benefit...