We consider a small-open, collateral-constrained AK economy. We show that the combination of CARA preferences and uncertainty on capital inflows in such an economy generates long-term (expected) growth while the deterministic counterpart does not. In this framework, long-term growth is entirely...

We use data from the European Community Household Panel (ECHP) to assess the effects of employee training on the individual labour market performance of different labour market groups in EU countries. We find significant training rage premia only in the case of young or highly educated...

This paper studies the Balassa-Samuelson effect in nine Central and East European countries. Using panel cointegration techniques, we find that productivity growth in the open sector leads to inflation in non-tradable goods. Because of the low share of non-tradables and the high share of food...