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Do institutional changes affect business cycles? Evidence from Europe
Canova, Fabio; Ciccarelli, Matteo; Ortega, Eva
Universitat Pompeu Fabra. Departament d'Economia i Empresa
We study the effects that the Maastricht treaty, the creation of the ECB, andthe Euro changeover had on the dynamics of European business cycles using a panelVAR and data from ten European countries - seven from the Euro area and threeoutside of it. There are changes in the features of European business cycles and in thetransmission of shocks. They precede the three events of interest and are more linkedto a general process of European convergence and synchronization.
Macroeconomics and International Economics
business cycles
european monetary union
panel var
structural changes.
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