Paper #1158

Title:

Do institutional changes affect business cycles? Evidence from Europe

Authors:

Fabio Canova, Matteo Ciccarelli and Eva Ortega

Date:

March 2009 (Revised: April 2012)

Abstract:

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 changes in the features of European business cycles and in the transmission of shocks. They precede the three events of interest and are more linked to a general process of European convergence and synchronization.

Keywords:

Business cycles, European Monetary Union, Panel VAR, Structural changes.

JEL codes:

C15, C33, E32, E42

Area of Research:

Macroeconomics and International Economics

Published in:

Journal of Economic Dynamics and Control, 36, 1520-1533, 2012

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