ASSESSING THE ENDOGENEITY OF OCA CONDITIONS IN EMU

Carlos Vieira and Isabel Vieira ()

No 42, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: The academic and political discussion about which countries met the conditions for joining EMU was decisively influenced by the Frankel and Rose (1997) hypothesis concerning endogenous OCA properties. The answer to their question "Is EMU more justifiable ex post than ex ante?" was a definite yes in their ex ante analysis. Our ex post examination of the euro's first decade, however suggests that the hypothesis does not hold for some countries. This paper utilizes panel data estimation techniques to compute OCA indices that help assess the OCA endogeneity hypothesis and signal current external and fiscal imbalances.

Keywords: optimum currency areas; OCA index; monetary union (search for similar items in EconPapers)
JEL-codes: F15 F36 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2011-11, Revised 2011-11
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_42.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: ASSESSING THE ENDOGENEITY OF OCA CONDITIONS IN EMU (2012)
Working Paper: Assessing the Endogeneity of OCA Conditions in EMU (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0042

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