By Adriana Agapie (auth.), Professor Wojciech W. Charemza, Professor Krystyna Strzała (eds.)

In March 1998 the eu Union officially introduced the accession method that might bring about an important growth of the Union. up to now ten nations from vital Europe: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic and Slovenia have submitted their functions for ecu club. This distinctive procedure instantly attracted recognition of economists and coverage makers. however, it may be spotted that between quite a few effects already released, there's a distinct scarcity of books and papers during which quantitative learn equipment are utilized. this is often to a wide quantity justified by way of the truth that the transition and accession approaches are new to the industrial sciences, their method isn't wellresearched, statistical info for the principal and East ecu international locations are scarce and never consistently trustworthy and, often, quantitative method appears a dicy and unsure enterprise. these kinds of all difficulties is additionally visible as a problem instead of a disadvantage. With this on brain, we've made up our minds to explain the established order by means of establishing a study seminar which interested in the method and quantitative research of the crucial and East ecu transition and pre-accession approaches. The seminar, East eu Transition and european growth: a Quantitative procedure organised through Macroeconomic and monetary information Centre (University of Gdansk and college ofLeicester) happened in Gdansk in June 2001. Our edited quantity includes papers built from this seminar.

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Thus, the estimate of lambda obtained from the approximated model is biased upwards, since exp[- (1- Ai)] > Ai when 0 < Ai < 1. This is shown more effectively in Figure 1. The straight line represents the true values of 6 In general, it is not possible to determine the analytical form of the likelihood function. In these cases, indirect inference is required to estimate the continuous time model. However, in our case, indirect inference is not required since it is easy to find the analytical form of the likelihood function.

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