Year: 2003
Type: article
Abstract: Most empirical applications of the OCA approach based on asymmetric shocks have failed to account for the credibility aspects that play an important role in deciding to join the EMU from the EMS or the EMS-BIS.In this paper, we tackle this problem by relying on a regime switching approach that characterizes the position of each economy in its business cycle.Then, using desynchronisation indices based on a non parametric approach, we measure the amplitude and the duration of divergence in the business cycles in order to assess the potential stabilization cost induced by the European economic and monetary union.
Source: Journal of Economic Integration
Authors: Michel Beine, Bertrand Candelon, Khalid Sekkat
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
Funder: Université de Lille
OpenAlex ID: W2136348279