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In this study we present a model for the outgoing telephone traffic from Spain to a group of 24 European countries. We use a point-to-point model that incorporates the specific characteristics of the international long distance service and the socioeconomic relationships between Spain and this group of countries, taking into account the simultaneity between incoming and outgoing traffic. Recently available data on minutes of conversation in each direction allow us to use panel data for the period 1981-91. We use an orthogonal deviations estimator with instrumental variables. The orthogonal deviations transformation allows the specific unobservable characteristics of each route of traffic to be controlled and the instrumental variables take care of the simultaneity between incoming and outgoing traffic. We estimate a total elasticity of the minutes of outgoing traffic per line with respect to its own real price of - 0.81. Other significant variables are: the volume of trade, the number of visitors from each country, the number of foreign residents and the minutes of incoming traffic. This last variable measures the so-called reciprocal calling effect which is highly significant with a positive elasticity of 0.78. [ABSTRACT FROM AUTHOR]

It has been suggested that members in the EC or the EFTA experienced significantly higher growth rates compared to nonmember countries. This suggests that the European integration either captures omitted variables or that it gives rise to increased growth rates through enhanced investment and/or increased knowledge transfer. The present study attempts to resolve this issue. The analysis identifies a two-link chain between European integration (EI) and growth through investment. In addition, on examining whether there are any knowledge spillovers resulting from integration it is found that integrated countries do in fact experience more knowledge spillovers compared to nonintegrated countries. Employing both the neoclassical and endogenous growth approaches, it is found that trade variables are especially important for growth in Total Factor Productivity (TFP). The study is undertaken for a panel sample consisting of 20 OECD countries and covering three time periods between 1976 and 1990. Special emphasis is placed on specification and sensitivity analysis. [ABSTRACT FROM AUTHOR]

Presents information on a study which analyzed the cost-structure of the railway systems in ten European countries, provided measures of efficiency and identified the sources that have affected the cost structure of the system. Theoretical model; Data and method of estimation; Statistical results; Conclusions.

We analyse the disinflationary experience between 1979-93 for two traditionally inflationary countries of the European Monetary System: France and Italy. For each country, a vector autoregressive model is estimated. Shocks in the model combine domestic and foreign sources. The latter capture the world oil price shocks as well as nominal and real shocks originating in Germany. Under investigation is the hypothesis that shocks originating in Germany have a spillover disinflationary effect in France and Italy. The empirical evidence provides support to the validity of this hypothesis. Furthermore, German shocks account for an important share of the total price variance in France and Italy. These results indicate that the interaction between countries of the European Monetary System has contributed to the success of the disinflationary experiences of the 1980s. The evidence sheds, therefore, some light on potential benefits that may be further realized as countries of the European Monetary System move towards their objective of achieving a single currency under a united monetary system. [ABSTRACT FROM AUTHOR]

This article examines how a new market signal of inflation expectation could be used to inform the policy-maker when interest rates could be lowered without triggering inflation. Methodologies have been developed aimed at measuring the gilts (inflation-indexed government bonds) market's forecast of the future inflation path. A gilts market window on expectation can be used as a diagnostic tool both to examine why a macroeconomic model forecasts badly, and also to detect the extent to which an external shock has shifted market expectation away from its equilibrium path. It is only via changes in perception that the behaviour of economic agents and therefore the future can be influenced towards the policy target. The estimates suggest that it is technically possible with the indexed gilts method to read the financial markets forecast of the future inflation path in Great Britain. The expected inflation path alters in response to external shocks and to subsequent policy reaction, and these movements in market expectation can be monitored as they occur. In principle, the gilts market can provide "on-line" instantaneous information on movements in expected future inflation in response to external events, news, political speeches and most important, in response to proposed policy reactions to events even before they are implemented.

"In this paper we estimate earnings functions for native born and foreign born white and non-white males in the English labour market, using data from the Quarterly Labour Force Survey.... Our results highlight the importance of distinguishing between native born and foreign born males when investigating the labour market experience of ethnic minorities. Furthermore, the earnings performance amongst white immigrants varies considerably.", (excerpt)