A standard, small open economy model would have problems accounting for the pattern of capital flows into capital-poor economies that open to the rest of the world: such types of models would predict extremely large and very sudden capital flows, putting these predictions at odds with the data....

Relatively little attention has been given to documenting the evolution of the skill premium (defined as the ratio of the wages of skilled to unskilled workers) in the economies of Central and Eastern Europe, most likely due to the lack of readily available data. In this article, we first...