This paper studies wage-setting coordination in a two-sector, open economy dynamic stochastic general equilibrium (DSGE) model. Two large sectoral unions anticipate the effects of their wage demands on aggregate variables. In an economy, there are externalities that can take into account to increase welfare, but strategic interaction between tends erode this gain. When takes place through norm ...

This paper investigates some of the man~estations and major forces driving the emergence of the new economy. A model of the virtual enterprise is proposed and investigated in the context of a virtual industry value chain. The transition to the virtual economy is definitely technology driven but is also shaped by social, economic, institutional forces. As such, it raises a number of significant ...

Nowcasting, that is, forecasting the current economic conditions, is a key ingredient for decision making, but it complex, even more so small open economy, due to higher volatility of its GDP. In this paper, we review required steps, taking Luxembourg as an example. We consider both standard and alternative indicators, used inputs in several nowcasting methods, including various factor machine ...