Business cycle transmission from the euro area to CEECs

Sandra Eickmeier and Jörg Breitung ()

No 229, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: A high degree of cyclical synchronization between the new EU member states (NMS) from Central and Eastern Europe and the euro area is generally seen as a prerequisite for successful EMU enlargement. We establish stylized facts on economic linkages between NMS and the euro area using dynamic correlation and cohesion measures. We then identify the main structural common euro-area shocks and investigate their transmission to NMS by means of a large-scale factor model. We compare it to the propagation to current EMU members.

Keywords: Dynamic factor models; international business cycles; EMU enlargement; sign restrictions (search for similar items in EconPapers)
JEL-codes: C3 E32 F02 (search for similar items in EconPapers)
Date: 2006-07-04
New Economics Papers: this item is included in nep-cba, nep-eec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:229

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