The Dynamic Interrelations between Unequal Neighbors: An Austro-German Case Study
Klaus Prettner and
Robert Kunst ()
Vienna Economics Papers from University of Vienna, Department of Economics
This article investigates the effects and transmission channels of shocks between two asymmetric neighboring countries. In particular, we investigate Austria and Germany which are highly integrated due to their common language and common membership of the European Monetary Union. Generalized impulse response functions reveal that there are large and significant effects of shocks to the German economy on Austria. In contrast, the effects of shocks to the Austrian economy on Germany are barely significant and if they are, their magnitude is comparatively small. Furthermore we can show that multiplier effects are present in Germany but not in Austria and we identify hysteretic properties in Austrian unemployment.
JEL-codes: C32 C53 F41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: The dynamic interrelations between unequal neighbors: an Austro-German case study (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vie:viennp:vie0913
Access Statistics for this paper
More papers in Vienna Economics Papers from University of Vienna, Department of Economics
Bibliographic data for series maintained by Paper Administrator ().