Testing cyclical convergence with the factor model in the Euro Area

In this paper we use the factor model and propose a parametric approach to investigate the process of cyclical convergence in the Euro Area (EA) over the period 1989-2011. Our results show that despite the fact that EA countries share a common business cycle, further convergence after the run-up period to the euro is found not to have been reached.

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Year of publication:	2013-09-03
Authors:	Delgado-Rodriguez, Maria Jesús ; lucas-Santos, Sonia De
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 33.2013, 3, p. 2245-2250
Publisher:	AccessEcon
Subject:	Business cycle \| Factor loadings \| Structural Stability \| Cyclical convergence

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Extent:	application/pdf
Type of publication:	Article
Classification:	F4 - Macroeconomic Aspects of International Trade and Finance ; E3 - Prices, Business Fluctuations, and Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010691434