Regional Wage and Employment Responses to Market Potential in the EU. Bruges European Economic Research (BEER) Papers 3/November 2005

Recent theoretical work on economic geography emphasizes the interplay of transport costs and plant-level increasing returns. In these models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than proportionate increase in production, a result known as the home market effect. Another strand emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection between these two strands. Using data on 57 European regions, we show how wages and employment respond to differentials in what we call real market potential, a discounted sum of demands derived from the theory.

Inflation and Unemployment In EMU and the United States. ACES Working Papers No. 10, 2008

The original purpose of this paper was to see why the Phillips Curve numbers seem to be so much worse for the EMU countries than the United States since EMU was began operation in 1990. The problem is that there is no evidence of a Phillips curve relationship in EMU or in the United States during this seventeen year period. As can be seen in Figures 1 and 2, it just is not there. In about half the years unemployment and inflation moved in the opposite direction, as Phillips would predict, but in other half of the years they moved in the same direction. This may be a matter of time lags, with unemployment lagging inflation, but it seems clear that the Phillips curve is a poor tool for explaining these year to year outcomes in Europe or the United States.

Shall Tunisia Succeed in Becoming a Strong Democratic State? EUSpring Arab Citizenship Review No. 13, December 2015

From the Introduction. Arab revolutions have sparked real hopes for democracy, but the situation varies from one state to another and change has taken various directions, with unpredictable outcomes in the future. In light of current events, most of these countries seem to have failed in their democratic transition and also face the dissolution of their state apparatus in bloody civil wars. This leaves the door open to interpretations associating democracy with chaos. In this view, preserving post-colonial states – authoritarian in most cases – is better than having no state at all. This partially justified the coup that took place in Egypt, where the ‘Deep State’ has recovered its capabilities in a dictatorial manner. The Arab world thus faced an impasse: the state is either stable but authoritarian or democratic yet threatened with dissolution. The dilemma results in an impossible choice between stable dictatorship or freedom ending in chaos.