HOW MUCH IS THE EURO AREA COMMON CYCLE AFFECTED BY THE UK?

Julien Garnier ()

National Institute Economic Review, 2009, vol. 208, issue 1, 109-117

Abstract: To what extent is the Euro Area common business cycle affected by the inclusion of the UK into this group? To answer this question, a semi-structural model estimated by the Kalman filter, which is robust to outliers and structural breaks, is used. We look at the correlations between business cycles taking potential phase shifts into account. On the one hand, a finding – coherent with existing literature – is that adding the UK to the euro group lowers correlations within the group. On the other hand, the UK cycle is increasingly linked to the Euro Area business cycle and has statistical properties that do not differ substantially from the Euro Area cycles.

Keywords: Common business cycles; optimal currency areas; Kalman filter (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ner.sagepub.com/content/208/1/109.abstract (text/html)

Related works:
Journal Article: How Much is the Euro Area Common Cycle Affected by the UK? (2009)
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: https://EconPapers.repec.org/RePEc:sae:niesru:v:208:y:2009:i:1:p:109-117

Access Statistics for this article

More articles in National Institute Economic Review from National Institute of Economic and Social Research Contact information at EDIRC.
Bibliographic data for series maintained by SAGE Publications ().