Search results for "euro area"
showing 7 items of 7 documents
Euro Area Structural Convergence? A Multi-Criterion Cluster Analysis
2015
Abstract This paper proposes a classification of the old member countries of the euro area in a structural data rich environment and run a convergence analysis using the same framework. First, we use a clustering approach and identify two structurally distinct clusters of countries that are not modified between 1999 and 2012: the South Countries Group (SCG) – composed of Greece, Italy, Portugal and Spain – and the Other Countries Group (OCG). Second, we propose a convergence metrics and reach three key findings: (i) increase over time of the between-clusters׳ dispersion; (ii) diverging demographics and innovation performance into the OCG, and (iii) an unfortunate convergence towards high la…
The EU's New Economic Governance Framework and Budgetary Decision‐Making in the Member States: Boon or Bane for Throughput Legitimacy?*
2021
The euro crisis has sparked changes in the EU's economic governance framework and a crisis of legitimacy across the union. While the institutional repercussions of the crisis have been studied before, the democratic impact at the national level has received much less attention. This paper aims to fill this gap, focusing on the procedural changes that the EU's new economic governance (NEG) framework has brought to national budgetary decision-making. Building upon the Varieties of Democracy framework, the paper adds empirical nuance and conceptual clarity to the notion of 'throughput legitimacy' and its components: openness, inclusiveness, transparency and accountability. Detailed case studie…
Trade imbalances within the euro area and with respect to the rest of the world
2015
Abstract Many studies have explored the determinants of current account balances in Europe. However, only in a few studies has trade balance been decomposed into intra balance, trade balance vis-a-vis the euro area, and extra balance, trade balance vis-a-vis the rest of the world. This decomposition is necessary for us to understand why some core euro area countries are acting as financial intermediaries for the periphery countries. Furthermore, the determinants of intra and extra balances might be different because nominal exchange rate cannot adjust between the EMU countries while their financial markets are highly integrated. Thus, we apply this decomposition and supplement the previous …
Currency unions and trade : what is the impact of the euro on trade in the euro area?
2012
The aim of this study is to estimate the effect of the euro on trade within the euro area. This has been a relevant question for European politicians ever since the launch of the common currency was agreed on in the Maastricht Treaty in 1992. To analyse the topic the gravity model of international trade augmented with several dummy variables is employed using panel data of 29 developed countries between 1995 and 2010. The estimated aggregate trade effect on the euro zone reaches 10 % in the most preferred regression and is comparable with earlier estimates. However, there is considerable variation in the results when different sample sizes are used. This could be a sign of omitted variable …
Investment Modelling at the Euro Area Level
2014
The aim of this research is to model the investment function at the level of the Euro zone. To achieve this main objective, we use and implement the structural equation modeling procedure for empirical analysis. Using this technique, the causal relationships established between investment and influencing factors are estimated and tested. Also, in the process of modeling structural equations, we examine empirical data sets related to the Euro area’s Member States.
BUSINESS CYCLE SYNCHRONIZATION BETWEEN ROMANIA AND THE EURO AREA. A FRESH LOOK IN VIEW OF THE RECENT CRISIS
2012
This paper examines the degree of business cycles synchronization between Romania and the Euro area, by using Germany as a benchmark for the area economic cycle. The period of the study is 2000 - 2011, with a special emphasis on the recent economic and financial crisis. Using the Hodrick-Prescott filter, we find important, but decreasing correlations in times of crisis in the level of GDP. Furthermore, the analysis by GDP components reveals that private consumption remains the least correlated with the Euro area, while foreign trade is highly correlated and its synchronization even increased during the recent crisis.
Analysis of Equilibrium at the Euro Area Level from a New Model Perspective
2015
This paper aims to address issues related to equilibrium at the Euro Area. Research methodology implies a wide range of methods and techniques that are used to analyze macroeconomic phenomena and processes at the Euro Area. Following the empirical analyses, namely exploratory factor analysis and structural equation modeling procedure, we propose a model of equilibrium in the Euro zone, an area characterized by the existence of market with turbulence and search frictions. Using this econometric modeling technique, we test and estimate causal relationships that combines a series of empirical data and quantitative causal hypotheses.