Investment behaviour in transition countries and computable general equilibrium models

When applying Computable General Equilibrium (CGE) models to transition economies, it is not plausible to use the standard assumption that the base year data represent stable structural characteristics or even the steady state of the economy. The suggestions forwarded until now to overcome this problem are discussed in this article. An amendment is proposed by modifying the investment modelling within the dynamic CGE setting. The standard formulation of installation costs for capital is extended through the inclusion of adjustment costs that depend on the change of the investment level. Such formulation of the adjustment costs within the dynamic CGE model leads to an investment behaviour that mirrors the empirical data of the first years of the transition.     

Economic upheaval in the Gulf region

The six countries of the Gulf Cooperation Council face similar economic and political problems: falling oil revenues, growing budget deficits and increased demands on their foreign resources, a one-sided economic structure and increased pressure by public opinion for political rights. Their approaches to finding solutions have varied. Will these approaches be adequate to exploit the economic potential of the region in the future? Improvements in certain areas give ground for optimism.     

Financial Flows to Transitional Economies in an Integrated Europe

MOCT-MOST: Economic Policy in Transitional Economies -     

EU integration of transition countries: Overlap of requisites and remaining tasks

Transition and reorientation towards Western Europe have been the two decisive challenges for the Central and Eastern European countries (CEECs) since 1989. Whereas in the early 1990s the transition from the central planning system to a market economy was the main goal of economic policies, the requirements for closer integration with the Western European countries have since then increasingly gained in importance. How do the two processes overlap? What requirements remain to be met before the candidate countries can join the European Union?