The Irish macroeconomic response to an external shock with an application to stress testing

Bermingham, Colin; Conefrey, Thomas

doi:10.1016/j.jpolmod.2014.01.013

Cited by 8 publications

(7 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Specifically, one standard deviation shock in foreign GDP triggers domestic GDP to rise to 0.0029% in the first period and this slightly increases to its maximum of 0.005% in the fifth period but successively decreases marginally to 0.0027% and 0.0022% in the 10th and 16th periods, respectively. This result conforms with the findings of Genberg (2005) and Bermingham and Conefrey (2014) that an increase in foreign GDP leads to increase in the domestic output and of Hassan et al (2017) that developing economies are interconnected to worldwide economy through real output.…”

Section: Impulse Response Of Structural Var Resultssupporting

confidence: 92%

“…The findings of the study by Matos et al (2011) suggest that external shocks have negative effect on economic growth. Bermingham and Conefrey (2014) analyze the sensitivity of the Irish economy to an unanticipated external demand shock using a Bayesian VAR model. The results show that 1% increase in the U.S. GDP growth leads to an increase in Irish GDP growth of 1.3% in the model.…”

Section: Theoretical and Empirical Review Of Literaturementioning

confidence: 99%

See 1 more Smart Citation

External Shocks, Institutional Quality, and Macroeconomic Performance in Nigeria

Abere

Akinbobola

2020

Sage Open

View full text Add to dashboard Cite

The study examines the relative contributions of external shocks and institutional quality to macroeconomic performance in Nigeria, using Structural Vector Autoregressive (SVAR) approach. The study establishes the dominance of the relative contributions of external shocks measures over institutional quality to macroeconomic performance in the country. Even though the dominance of terms of trade and foreign aid is highlighted, the role of institutional quality is equally important as it also has significant positive effect on performance. The study concludes that both external shocks and institutional quality play significant roles, and hence, posits the existence of favorable institutional environments as a panacea to successfully absorbing the influence of external shocks which are exogenous to the economy.

show abstract

Section: Impulse Response Of Structural Var Resultssupporting

confidence: 92%

Section: Theoretical and Empirical Review Of Literaturementioning

confidence: 99%

External Shocks, Institutional Quality, and Macroeconomic Performance in Nigeria

Abere

Akinbobola

2020

Sage Open

View full text Add to dashboard Cite

show abstract

“…Kanda (2008) finds that shocks to US output have a larger impact on Irish output than shocks to the euro area or UK output, using a vector autoregression (VAR). Bermingham and Conefrey (2014) also show that Irish economic growth is highly sensitive to the economic performance of its trading partners. Using a Bayesian-estimated VAR, they find that the Irish economy is most responsive to changes in euro area output, which is in line with Ireland's relative export shares.…”

Section: Introductionmentioning

confidence: 88%

US Corporate Tax Rate Cuts: Spillovers to the Irish Economy

Clancy¹

2019

SSRN Journal

View full text Add to dashboard Cite

We examine spillovers to the Irish economy from US corporate income tax rate cuts and find they lead to a small but persistent increase in Irish economic output. Our analysis of the transmission channels shows that an increase in investment, employment and exports in the externally-financed industrial sector largely drives this expansion. We also find that output spillovers from US corporate income tax cuts are larger when there is slack in the Irish labour market. Our findings suggest that the changing structure of the Irish economy means any spillovers to real economic activity from the recent US corporate tax cuts could be relatively minor. However, the larger presence and shifting focus of foreign multinational corporations' operations in Ireland means lessons from past US corporate tax cuts may be of limited value in predicting the effects of the recent US tax system reform.

show abstract

“…These patterns contrast with the assumptions in Brunnermeier and Sannikov (2014) and Krishnamurthy (2012, 2013), which feature procyclical equity. The negative association between higher economic activity and external competitiveness is a common feature of empirical studies of the Irish economy (see, for example, Bergin et al, 2013;Bermingham and Conefrey, 2014). In fact, Podstawski (2014) provides empirical evidence that this price competitiveness channel is the most important driver of Irish current account deficits.…”

Section: Comparison With Literaturementioning

confidence: 97%