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Konjunkturinstitutet - National Institute of Economic Research Working Papers, Konjunkturinstitutet - National Institute of Economic Research

No 51:
Internationalists, Regionalists, or Eurocentrists

Thomas Url

Abstract: The paper classifies small open economies in Europe into three categories. First, countries moving primarily in line with international fluctuations. Second, countries responding mainly to shocks at the EU level, and third, countries where fluctuations can be attributed essentially to domestic shocks. A variance decomposition of residuals from a Structural Vector Autoregression model is used for this classification. The results allow an assessment of the degree of real integration in Europe and of the benefits and costs from further steps of integration.

Keywords: International Business Fluctuations; European Integration; (follow links to similar papers)

JEL-Codes: E32; F15; (follow links to similar papers)

40 pages, April 1, 1996

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