Study on Economic Integration and Business Cycle Synchronisation
Author | : Zentrum für Europäische Wirtschaftsforschung (Mannheim) |
Publisher | : |
Total Pages | : 156 |
Release | : 2008 |
ISBN-10 | : OCLC:847358266 |
ISBN-13 | : |
Rating | : 4/5 (66 Downloads) |
Book excerpt: "This study analyses business cycle synchronisation in the euro area and beyond from different angles. First, a comprehensive survey of the relevant literature is provided in chapter 2. The em-pirical analysis starts in chapter 3 with the determination of output gaps as the most important indi-cator of the cyclical stance of the economies. Different methods are applied to account for the un-certainty surrounding the estimation of this unobserved variable. Then, cross-country correlations of the output gaps and their evolution over time are determined. A cluster analysis is undertaken in order to identify countries sharing similar business cycle characteristics. Time-varying patterns in euro area business cycle synchronisation may be a reflection of global phenomena, rather than being genuine to the euro area. Therefore, the findings for the euro area are put into a global per-spective. In particular, business cycle co-movement is analysed also for the EU countries outside the euro area, the OECD countries in general, and for the states within the US as well as within the group of the G7 countries."--p. iii.