This book makes a unique contribution to the assessment of Eurozone's foundations and viability by drawing on factor mobility. It makes essential reading for all professionals keen in Eurozone economics and anyone with a genuine interest on the future of EU/Eurozone. Static and dynamic econometric analysis provide an excellent guide to quants specialists and at the same time navigates the non-specialist through the key issues relating to Eurozone's capital and labour mobility in a very reader-friendly manner. In this way, readers' ability to evaluate Eurozone's challenges is greatly enhanced while appreciating the complexities surrounding factor mobility. -- Dimitrios Syrrakos , Head of Economics, Keele Business School, UK. This book is the second of three volumes that uses the theory of Optimal Currency Areas and applied econometric techniques to provide the reader with a compact analysis of the Euro Area, its evolution and future perspectives. This volume is dedicated to another critical criterion for an Optimal Currency Area: capital and labor mobility across regions. Did labor and capital mobility dampen asymmetric shocks among regions during the short history of the Euro? In the absence of flexible exchange rates, a currency union needs other adjustment mechanisms for the absorption of asymmetric shocks.

This role is usually played by factor mobility. Thus, labor and capital mobility ensure the well-functioning of a currency union in the advent of such shocks. In this timely book, the authors discuss whether the Euro Area shows properties of factor mobility that allow an automatic stabilization in the advent of adverse shocks. The book is of interest to a wide range of researchers in financial economics, macroeconomics and economic policy. Johannes Kabderian Dreyer is an associate professor of Financial Economics at Roskilde University. He holds a doctorate in Financial Economics from the Ingolstadt School of Management (Catholic University of Eichstätt-Ingolstadt, KU), financed by the German Academic Exchange Service (DAAD). Peter Alfons Schmid is a professor for business administration, finance and entrepreneurship at the FOM University of Applied Sciences, and contract lecturer at the Free University Bolzano-Bozen. During his doctoral studies, he was teaching and research assistant at the Chair of Economic Theory of the KU, where he earned his doctorate.