Identifying the Shocks behind Business Cycle Asynchrony in Euroland

Carsten Trenkler and Enzo Weber

No 466, University of Regensburg Working Papers in Business, Economics and Management Information Systems from University of Regensburg, Department of Economics

Abstract: This paper investigates which shocks drive asynchrony of business cycles in the euro area. Thereby, it unites two strands of literature, those on common features and on structural VAR analysis. In particular, we show that the presence of a common cycle implies collinearity of structural impulse responses. Several Wald tests are applied to the latter hypothesis. Results reveal that differences in the GDP dynamics in several peripheral countries compared to a euro zone core are triggered by idiosyncratic, and to a lesser extent also world, shocks. Additionally, real shocks prove relevant rather than nominal ones.

Keywords: Common cycles; euro area; impulse responses; structural VAR; Wald test (search for similar items in EconPapers)
JEL-codes: C32 E32 (search for similar items in EconPapers)
Date: 2012-06-13
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://epub.uni-regensburg.de/24774/1/Euroland.pdf (application/pdf)

Related works:
Working Paper: Identifying the Shocks behind Business Cycle Asynchrony in Euroland (2012)
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:bay:rdwiwi:24774

Access Statistics for this paper

More papers in University of Regensburg Working Papers in Business, Economics and Management Information Systems from University of Regensburg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Gernot Deinzer ().