FISCAL INDULGENCE IN CENTRAL EUROPE: LOSS OF THE EXTERNAL ANCHOR?

In recent years, fiscal performance in Central Europe has steadily deteriorated, in contrast to the improvement in the Baltics. This paper explores the determinants of such differences among countries on the path to European Union (EU) accession. Regression estimates suggest that economic and institutional fundamentals do not provide a full explanation. An alternative explanation lies in the political economy of the accession process, and a game‐theoretic model illustrates why a country with a stronger bargaining position might have an incentive to deviate from convergence to the Maastricht criteria. The model generates alternative fiscal policy regimes – allowing for regime shifts – depending on country characteristics and EU policies.     

Zoning, TDRs and the density of development

This paper explores the effect of low density zoning regulations and other factors on subdivision density. Using a unique dataset of new subdivisions built over a 34-year period in Calvert County, Maryland, we econometrically estimate a density function using both OLS and censored regression. The variability in density permitted by the county's zoning and TDR rules over the sample period allows us to assess the relative importance of market factors and regulatory constraints on density. We use the censored model to predict what density patterns would have been without zoning.