Economic Spillovers, Structural Reforms and Policy Coordination in the Euro Area (eBook)

Bas Van Aarle, Klaus Weyerstrass (Herausgeber)

eBook Download: PDF

2007 | 2008
XI, 235 Seiten
Physica (Verlag)
978-3-7908-1970-0 (ISBN)

Infos

This book analyzes economic interdependence in the Euro Area. It offers expert estimates of the sign and size of economic spillovers. Moreover, the authors explore the impact of economic policy coordination on economic performance in the Euro Area. Among the many topics explored are the link between fiscal and monetary policies in the Euro Area and the coordination of fiscal policies and of structural reforms.

Inhalt

Preface 6
Contents 7
Contributors 10
1 Economic spillovers, structural reforms and policy coordination in the Euro Area: An overview 11
1.1 Introduction 11
1.2 A working definition of spillovers 13
1.3 Overview of the literature 16
1.4 Overview of the main results 23
1.5 Policy implications and avenues for further research 27
References 32
2 Budgetary spillovers and short-term interest rates 36
2.1 Introduction 36
2.2 Methodology and literature 37
2.3 Fiscal spillovers at the aggregate Euro Area level 39
2.4 Fiscal spillovers in the Euro Area at the country level 45
2.5 Conclusion 58
Appendix: Characteristics of the dataset 59
References 61
3 Budgetary spillovers and long-term interest rates 63
3.1 Introduction 63
3.2 Deficits and interest rates: is there any robust evidence? 65
3.2.1 Static versus dynamic models 65
3.2.2 Capital flows and crowding out in open economies 69
3.2.3 Monetary integration and crowding out 70
3.3 A stock-flow fiscal VAR for open economies 71
3.4 Crowding-out effects of fiscal policies 81
3.5 Spillovers of fiscal policies 82
3.5.1 Relative fiscal shocks and relative crowding out 83
3.5.2 Crowding out in small open economies 88
3.5.3 Robustness checks 101
3.6 Conclusion 102
Appendix A: Domestic economy: SVAR models with exogenous debt ratio 105
Appendix B: SVAR models with yield 106
References 109
4 Budgetary stabilisation and the level of public debt 115
4.1 Introduction 115
4.2 A look at fiscal theory and empirics 116
4.3 Threshold regression models 120
4.4 Data description and regression set-up 123
4.5 Results 125
4.6 Conclusion 130
Appendix A: Data sources and definitions 130
Appendix B: ADF unit root tests 132
Appendix C 132
Appendix D: Years above the threshold 133
References 134
5 Spillovers from economic reform 136
5.1 Introduction 136
5.2 Determination of mark-up ratios 137
5.3 Mark-up and macroeconomic performance 144
5.3.1 Total factor productivity growth 144
5.3.2 Employment 147
5.3.3 Unemployment rate 149
5.3.4 Labour productivity growth 150
5.4 The influence of regulation on the mark-up 152
5.5 Conclusion 157
Appendix: Data sources and definitions 159
References 160
6 Macroeconomic and welfare effects of structural and budgetary policies: spillovers in the MSG3 model 162
6.1 Introduction 162
6.2 Effects of structural policies 163
6.3 Budgetary consolidation policies 169
6.4 Structural reform and budgetary consolidation 183
6.5 Sensitivity analysis: monetary versus inflation targeting 192
6.6 Welfare Effects 198
Appendix: The MSG3 Macroeconomic Global Model 205
References 208
7 Have Europe’s labour markets become more flexible? An exercise in measuring the relative flexibility of wages across countries and time 209
7.1 Introduction 209
7.2 Methodology: The analytic background and estimation technique 211
7.3 The empirical evidence on wage flexibility 213
7.4 Statistical results 214
7.5 The benchmark and indicators of wage flexibility 217
7.6 The US wages spectrum 220
7.7 Country by country results 221
7.8 Conclusion 229
Appendix: Time frequency techniques and the estimation of time- varying spectra or cross- spectra 230
References 235
Index 239

Produkt-Details

• Erscheint lt. Verlag: 31.10.2007
• Reihe/Serie: Contributions to Economics
• Zusatzinfo: XI, 235 p.
• Verlagsort: Heidelberg
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Adjustment • Budgetary Policies • Euro • Euro Area • Europe • Macroeconomic Policy • Public Debt • Wage Flexibility
• ISBN-10: 3-7908-1970-0 / 3790819700
• ISBN-13: 978-3-7908-1970-0 / 9783790819700