Free movement of production factors in the enlarged EU has led to immigration flows from
East to West and from South to North with a significant impact on EU labor markets. Fiscal …

We present a truncation theory of idiosyncratic histories for heterogeneous‐agent models.
This method allows us to solve for optimal Ramsey policies in such models with aggregate …

Facing an ageing population and historical trends of low employment rates, pay-as-you-go
(PAYG) pension systems, currently in place in several European countries, imply very large …

A prerequisite for an optimum currency area are limited divergent developments. In this
paper, we assess analytically whether an international transfer mechanism can enhance …

The European fiscal governance framework remains incomplete, hindering policy
coordination during economic shocks and affecting the transmission of the single monetary …

This paper develops a decomposition framework to study the importance of different
stabilization channels of an unemployment re-insurance scheme for the euro area. Running …

We model a reinsurance mechanism for the national unemployment insurance programs of
euro area member states. The risk-sharing scheme we analyze is designed to smooth …

To moderate the falls in production and income that affect certain states or regions, countries
and monetary unions have risk-sharing mechanisms. These mechanisms work by stabilising …

This paper studies the long‐run impact of international labor mobility on a union of countries
with an integrated labor market. We build a multicountry model populated by overlap** …

Many EU countries have disparities in fiscal taxes and social security contributions, which
result in uneven ways for the governments to deploy their financial help. With this …