Theoretical and Applied Economics
No. 1 / 2012 (566)
Testing the Asymmetry of Shocks with Euro Area
Bucharest Academy of Economic Studies
Abstract. The objective of this study is to identify the demand and supply shocks affecting 13 EU member states and to estimate their degree of correlation with the Euro area shocks. This research ensures identifying the asymmetry of shocks degree with the monetary union, depending on which it’s judging the desirability of adopting a single currency. The analysis is also useful for the economies outside the Euro area, because they are strongly commercial and financial integrated especially with the core economies from union. Applying the Blanchard and Quah methodology to estimate the shocks in the period from 1998:1- 2010:3, I have found a weak and negative correlation between demand shocks and a medium to high correlation of the supply shocks. The results obtained suggest the presence of a structural convergence process with the Euro area, in the context of domestic macroeconomic policies rather different, both inside and outside the monetary union.
Contents
Testing the Asymmetry of Shocks with Euro Area
The Population and the Labor Force Market
Negative Income Tax and Labor Market Participation. A Short Run Analysis
The Industry – a Vulnerable Source of Economic Recovery in Romania
Sustainable Development of South-West Oltenia Region in the Current Economic Crisis
The New and the Future Look of the Economy
The Spread of Economic Ideas among Romanian People. Case Study: Alexandru D. Xenopol
Using Quantitative Data Analysis Techniques for Bankruptcy Risk Estimation for Corporations
The New Governance and Globalization
The Political Economy of World Heavyweight Boxing during the Great Depression