Implementation of the European Water Framework Directive: Integration of hydrological and regional planning at the Segura River Basin,southeast Spain

The implementation of the European Water Framework Directive (WFD) is a great challenge for a catchment area such as the Segura River Basin. An intense use of hydrological resources has taken place in this semi-arid region of southern Spain, with the huge territorial transformation, demonstrated in the expansion of the irrigated areas and the growth of urbanization, principally in the last few decades. The provision of water to the population in particular has improved since the middle of the 20th century owing to the Mancomunidad de los Canales del Taibilla (MCT) and to their extraordinary development of hydrological infrastructure. The MCT also has to manage various resources, principally the transfer from the Tagus River to the Segura.     

Purchasing Power Parity: Error Correction Models and Structural Breaks

This paper examines purchasing power parity (PPP) behavior using error correction models (ECM) and allowing for structural breaks. We distinguish four different objectives: first, this paper examines which variable or variables (the exchange rate and/or international relative prices) exhibit a significant error correction mechanism. Second, this paper presents empirical evidence about the adjustment velocity to the long-run equilibrium. Third, it examines the evidence regarding cointegration and the adjustment coefficients parameter instability, and finally, it analyzes whether traded and non-traded sectors exhibit different behavior. The most important results are: (1) the predominant adjustment is in the exchange rate with a larger velocity adjustment than in relative prices; (2) the evidence suggests that when there are strong depreciations or appreciations in the exchange rate, the international relative prices adjust (i.e., there is evidence of pass-through); (3) the dynamic adjustment to equilibrium is, in general, stable.