Common macroeconomic shocks and business cycle fluctuations in Euro area countries

Cavallo, Antonella; Ribba, Antonio

doi:10.1016/j.iref.2015.03.006

Cited by 22 publications

(16 citation statements)

References 42 publications

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“…Besides, it seems that the VAR methodology has got a renewed interest and further research paper have used it (see Qin (2010), for a survey). It seems an adequate methodology for the question to analyse macroeconomic shocks, which have been a common feature on the recent situation of most of the economies (Cavallo & Ribba, 2015;Cloyne & Hürgen, 2016 etc) and has been applied to the issue of bankruptcies (Zhang et al, 2013, Mamatzakis et al, 2016. An essential step in VAR analysis is the identification or orthogonalization of innovations.…”

Section: The Modelmentioning

confidence: 99%

Macroeconomic Determinants of Corporate Failures. Evidence From Romania and Spain

Anghel

Enache

Lucas

2020

Journal of Business Economics and Management

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The purpose of this study is to investigate the reaction of the insolvency rate to the various shocks in the economies of Romania and Spain through a Structural Vector Autoregressive model. Departing from quarterly data for 2008–2016, it was found that the future values of the insolvency rate are explained by the past values of the interest rate and the retail trade index, more precisely macroeconomic risk factors cost of debt and changing in demand are main responsible for the health of non-financial corporations sector. In contrast, the influence of the investment rate on insolvency rate is not predictable. In addition, both in Romania and in Spain the interest rate is the main determinant of the insolvency rate variation, beyond its own innovations, in horizons of over 2 quarters. These results were obtained under the circumstances that the analysed period was characterized by the Great Recession and its recovery. In this situation, firms faced a lesser demand as well as a tightening on the possibilities of obtaining the external funds they needed, not only to finance their expansion projects but even their daily operations. Consequently, many firms faced a negative environment that forced them to go out of the market.

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Section: The Modelmentioning

confidence: 99%

Macroeconomic Determinants of Corporate Failures. Evidence From Romania and Spain

Anghel

Enache

Lucas

2020

Journal of Business Economics and Management

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“…The profusion of studies in this period has been broader for Europe, where sufficient data regarding the validity period of the Euro has begun to be available (e.g. Boivin et al ., ; Cavallo and Ribba, ; Georgiadis, ), than for the United States (e.g. Owyang and Wall, ; Beckworth, ).…”

Section: Introductionmentioning

confidence: 99%

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

Domínguez-Torres

Recio

2018

Journal of Economic Surveys

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This survey provides an updated review of the empirical literature on the regional effects of monetary policy in economic activity by means of undertaking a threefold perspective. First, the main methodological dimensions of this literature are examined while pinpointing those modelling or methodological traits that constitute a source of diverging estimates and thereby produce inconclusive evidence. Secondly, the estimates yielded by the literature are summarized by carrying out a crossstudy analysis of the results for each monetary union. By drawing on empirical regularities that are robust across studies, the conclusiveness of the results is assessed, while those monetary unions for which conclusive evidence is still lacking are also identified. Lastly, the sources of regional heterogeneity identified by these studies are reviewed in order to shed some light on the linkage between monetary policy and territorial heterogeneity. As a result of this threefold perspective, this survey delivers overall structured conclusions and updated policy-relevant lessons. Moreover, various research gaps and emerging topics in the literature are also identified.

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“…The European Central Bank (2015) also argue that CEE countries have been catching up to the EU average over the last 15 years, however, during this period the convergence among the 12 countries that formed the Eurozone (EU-11 plus Greece) has been disappointing. Antonella Cavallo and Antonio Ribba (2015) conclude, analyzing eight euro countries, that there exists a significant macroeconomic heterogeneity in the Eurozone, where the business cycles of some countries like Greece, Ireland or Portugal are mainly dominated by local shocks. Filippo Ferroni and Benjamin Klaus (2015) show a decoupling of Spain of Germany and France.…”

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confidence: 99%

Economic crisis and convergence in the Eurozone countries

et al. 2017

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Although a key condition for the creation of a monetary union is the existence of similar structural characteristics that reduce the existence and incidence of asymmetric shocks, in the case of the Eurozone, most, if not all, studies have emphasized the existence of sizeable divergences both in the macroeconomic performances and in the structural elements of the Eurozone countries. The objective of the paper is to analyse whether the economic and financial crisis that is affecting the Eurozone since the year 2008 has had any impact of the coherence of the Eurozone, that is, whether after 2008 the differences in the macroeconomic performance of the euro counties are declining (convergence) or increasing (divergence).

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Common macroeconomic shocks and business cycle fluctuations in Euro area countries

Cited by 22 publications

References 42 publications

Macroeconomic Determinants of Corporate Failures. Evidence From Romania and Spain

Macroeconomic Determinants of Corporate Failures. Evidence From Romania and Spain

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

Economic crisis and convergence in the Eurozone countries

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