EconPapers    
Economics at your fingertips  
 

Euro Area Imbalances: Measuring the Contribution of Expenditure Growth and Expenditure Switching

Enno Schröder

No 1604, Working Papers from New School for Social Research, Department of Economics

Abstract: The article introduces a decomposition of trade flows that allows to measure expenditure-growth effects (changes in domestic and foreign final demand) and expenditure-switching effects (changes in the allocation of demand across domestic and foreign producers). The decomposition is applied to 11 euro members 1990-2014. Most countries, including Germany, recorded unfavorable expenditure-switching effects (demand shifted from domestic to foreign producers); expenditure switching was most unfavorable in Finland, France, and Italy. There is no correlation between unit labor cost growth and expenditure switching.

Keywords: Competitiveness; euro area; external adjustment; expenditure switching; macroeconomic imbalances (search for similar items in EconPapers)
JEL-codes: F4 F41 F45 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-08
New Economics Papers: this item is included in nep-eec and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.economicpolicyresearch.org/econ/2016/NSSR_WP_042016.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: Eurozone Imbalances: Measuring the Contribution of Expenditure Switching and Expenditure Volumes 1990-2013 (2015) Downloads
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:new:wpaper:1604

Access Statistics for this paper

More papers in Working Papers from New School for Social Research, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mark Setterfield ().

 
Page updated 2024-05-17
Handle: RePEc:new:wpaper:1604