Convergence in the trends and cycles of Euro-zone income

Andrew C. Harvey and Vasco Marques de Carvalho ()

Journal of Applied Econometrics, 2005, vol. 20, issue 2, pages 275-289

Abstract: Multivariate unobserved components (structural) time series models are fitted to annual post-war observations on real income per capita in countries in the Euro-zone. The aim is to establish stylized facts about convergence as it relates both to long-run and short-run movements. A new model, in which convergence components are combined with a common trend and similar cycles, is proposed. The convergence components are formulated as a second-order error correction mechanism; this ensures that the extracted components change smoothly, thereby enabling them to be separated from transitory cycles. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
View list of references View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1002/jae.820 Link to full text; subscription required (text/html)
http://qed.econ.queensu.ca:80/jae/2005-v20.2/ Supporting data files and programs (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jae:japmet:v:20:y:2005:i:2:p:275-289

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

Access Statistics for this article

Journal of Applied Econometrics is edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().