We calculate the magnitude of the fiscal spending multiplier in linearised and nonlinear solutions of a New Keynesian model at the zero lower bound. Importantly, the model is amended with real rigidities to simultaneously account for the macroeconomic evidence of a low Phillips curve slope and t...
This paper presents the proceedings of the annual Public Finance Workshop organised by the Directorate-General for Economic and Financial Affairs in Brussels on 19 January 2016 in relation with the publication of its Public Finance in EMU 2015 Report. After the double-dip recession between 2009 ...
This paper investigates micro-level effects of export market entry on firm-level productivity. In particular, we study the effects of single and multiple export market entry, and additionally differentiate between the effects of export market entry by destination country. To isolate the impact o...
This paper provides an assessment of the uncertainty surrounding revenue predictions, through an ex post analysis of European Commission’s forecasts over the last 15 years. It estimates the forecast errors affecting revenue for all 28 Member States, using the different vintages of the autumn and...
The dissolution of Yugoslavia and the wars in the 1990s shattered economic structures in the Western Balkans. These traumatic events disrupted patterns of production and the movement of goods, capital, and labour which had been established over more than half a century while most of these countr...
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 uncert...
In this paper we compare the accelerationist Phillips curve to the New-Keynesian Wage Phillips curve in Euro Area countries which went through major swings in the unemployment rate in recent years. We find that the New-Keynesian wage Phillips curve signals cyclical fluctuations in unemployment m...
We provide insights into the macro and microeconomic underpinnings of company profitability developments in Italy. We show that the average ROA (returns on assets) of Italian companies declined slightly between 1993 and 2005 and then contracted sharply during the economic crisis before starting ...
The high level of private debt in many EU countries has put a spotlight on the role that insolvency frameworks can play in helping to address debt overhangs and clean bank balance sheets of non-performing loans.This paper reviews the macroeconomic relevance of insolvency frameworks from an EU pe...
This volume presents the proceedings of the workshop organised by the Directorate-General for Economic and Financial Affairs (ECFIN) jointly with the European Stability Mechanism (ESM) and the German Council of Economic Experts (GCEE) on 19 September 2017 in Brussels. The workshop aimed at raisi...