Scandinavian Working Papers in Economics
Working Papers,
National Institute of Economic Research
No 134: The Euro Crisis and Swedish GDP Growth — A Study of Spillovers
Pär Österholm () and Pär Stockhammar ()
Additional contact information
Pär Österholm: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Pär Stockhammar: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Abstract: In this paper, a Bayesian VAR model is used to study the effects of euro area shocks on GDP growth in the small open economy of Sweden. A novel feature is that the new policy uncertainty index of Baker et al.(2013) is introduced in the model. The model behaves well in terms of reasonable impulse response functions. The specific effects of the euro crisis are investigated through a historical decomposition which shows that shocks to euro area GDP growth have been a reasonably important factor for Swedish GDP growth, supporting it during 2010 and holding it back thereafter. Generally, shocks to policy uncertainty have held back Swedish GDP growth during the euro crises.
Keywords: Small open economy; Bayesian VAR; Policy uncertainty index
15 pages, March 25, 2014
Full text files
Working-Paper-134-Th...dy-of-Spillovers.pdf
Questions (including download problems) about the papers in this series should be directed to Sarah Hegardt Grant ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:12:55.