Do institutional changes affect business cycles?: evidence from Europe

By Fabio Canova, Matteo Ciccarelli, Eva Ortega. 2012

121 citations recorded by the source corpus.

We study the effects that the Maastricht treaty, the creation of the ECB, and the Euro changeover had on the dynamics of European business cycles using a panel VAR and data from ten European countries - seven from the Euro area and three outside of it. There are slow changes in the features of business cycles and in the transmission of shocks. Time variations appear to be unrelated to the three events of interest and instead linked to a process of European convergence and synchronization.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/95ff62bf6ccf9d3c9d521ece4224d8bc7b23762b

Citations in the corpus

• Do Euro Area Countries Respond Asymmetrically to the Common Monetary Policy (2014, unknown): “These results are consistent with Canova et al. (2012) and Breitung and Eickmeier (2011).”
• Panel Vector Autoregressive Models: A Survey (2013, unknown): “Alternative shortcuts, such as the one imposed in Canova et al. (2012), where shocks occurring in one unit (Germany) are allowed to feed contemporaneously on all other units (European countries) but not viceversa, may be acceptable if there are good economic reasons to justify them.”