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The aim of the paper is to compare output fluctuations in Candidate Countries and Member States of the European Union (EU) in the last decade. We assume a dynamic factor model with three additive unobserved components: the output growth for the three main industrial groupings (mining,...
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Convergence in gross domestic product series of five European countriesis empirically identified using multivariate time series models that arebased on unobserved components with dynamic converging properties.We define convergence in terms of a decrease in dispersion over timeand model this...
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