EU Issues in Accesion and Reforms

October, Friday 28th | 9:15-10:45 hs

Contributed Session CS11

Room 34

 
Chair: António Afonso, European Central Bank and ISEG/UTL-Technical University of Lisbon
 
 

 

 The Political Economy of Structural Reforms under the Stability and Growth Pact

 

  

 

Session: EU Issues in Accesion and Reforms

 

  

Presenter

 Marcos Poplawski Ribeiro, University of Amsterdam

 

  

Author(s)

Marcos Poplawski Ribeiro, University of Amsterdam

Roel Beetsma, University of Amsterdam

 

  

 

 

This paper analyzes the political incentives of a government facing electoral uncertainty to implement structural reforms in the presence of fiscal constraints. Governments face a trade-off between reducing electoral uncertainty by providing compensation and keeping the deficit low. Tighter sanctions, volatile shocks and income inequality worsen the trade-off. To avoid this deterioration we look at more flexible pacts that increase the acceptability of the reform package by the voters.

 

 

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 What Helps Regions in Eastern Europe Catch Up? The Role of Foreign Investment, Human Capital and Geography

 

  

 

Session: EU Issues in Accesion and Reforms

 

  

Presenter

 Gabriele Tondl, Vienna University of Economics and Business Administration

 

  

Author(s)

Gabriele Tondl, Vienna University of Economics and Business Administration

Goran Vuksic, Institute of Public Finance, Zagreb

 

  

 

 

The paper analyzes regional growth in Eastern Europe in the second half of the 1990s. We wish to identify important factors for catching-up and investigate the role of (foreign) investment, education and R&D as well as geographical factors in a model of economic growth using spatial econometrics. It shows that FDI, higher-level human capital and innovation were crucial to growth. Human capital was essential to technology transfer. Important spatial dependencies led to regional growth clusters.

 

 

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 Pilgrims to the Eurozone: How Far, How Fast?

 

  

 

Session: EU Issues in Accesion and Reforms

 

  

Presenter

 Evzen Kocenda, CERGE-EI, Charles University and Academy of Sciences, Prague

 

  

Author(s)

Evzen Kocenda, CERGE-EI, Charles University and Academy of Sciences, Prague

Ali M. Kutan, Southern Illinois University Edwardsville and Center for European Integration Studies, Bonn

Taner M.Yigit, Bilkent University, Turkey

 

  

 

 

This paper examines convergence of recent European Union (EU) members to the EU standards. Novel features of the paper include more complete measures of convergence and more appropriate tests allowing for structural breaks. The results indicate slow but steady per-capita income convergence towards the EU standards. We find significant inflation and interest rate convergence. However, progress on fiscal convergence is discouraging, indicating lack of fiscal sustainability.

 

 

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 Ricardian Fiscal Regimes in the European Union

 

  

 

Session: EU Issues in Accesion and Reforms

 

  

Presenter

António Afonso, European Central Bank and ISEG/UTL-Technical University of Lisbon

 

  

Author(s)

António Afonso, European Central Bank and ISEG/UTL-Technical University of Lisbon

 

  

 

 

The prevalence of Ricardian fiscal regimes is relevant for practical policy reasons. The purpose of this paper is to assess the empirical evidence concerning the existence of Ricardian fiscal regimes in EU-15, with a panel data set for the period 1970-2003. The results support the Ricardian fiscal regime hypothesis throughout the sample period, and for sub-samples accounting for the dates of the Maastricht Treaty and for the setting-up of the Stability and Growth Pact.

 

 

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 Turkey’s Membership in EU - Pros and Cons

 

  

 

Session: EU Issues in Accesion and Reforms

 

  

Presenter

 Ali Fatemi, The American University of Paris

 

  

Author(s)

Ali Fatemi, The American University of Paris

 

  

 

 

(sorry, not available at this time)

 

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