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The shrinking endogeneity of optimum currency areas criteria: Evidence from the European Monetary Union--A beta regression approach

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  • Mendonça, António
  • Silvestre, João
  • Passos, José

Abstract

The endogeneity of optimum currency area criteria has been widely studied. Literature suggests the existence of a positive relationship between trade intensity and business cycle correlation. Using a beta regression model for the Eurozone we have concluded that trade has a decreasing marginal effect on business cycle correlation.

Suggested Citation

  • Mendonça, António & Silvestre, João & Passos, José, 2011. "The shrinking endogeneity of optimum currency areas criteria: Evidence from the European Monetary Union--A beta regression approach," Economics Letters, Elsevier, vol. 113(1), pages 65-69, October.
    • Handle: RePEc:eee:ecolet:v:113:y:2011:i:1:p:65-69
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    Cited by:

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    2. Crespo-Cuaresma, Jesús & Fernández-Amador, Octavio, 2013. "Business cycle convergence in EMU: A first look at the second moment," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 265-284.
    3. Andrea Bonilla‐Bolaños, 2021. "A step further in the theory of regional integration: A look at the South American integration strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 845-873, July.
    4. Krzysztof Beck, 2013. "Structural Similarity as a Determinant of Business Cycle Synchronization in the European Union: A Robust Analysis," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    5. Krzysztof Beck & Jakub Janus, 2013. "Aggregate Demand Disturbances in the Visegrad Group and the Eurozone," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 1(3), pages 7-19.
    6. Balogun, Emmanuel Dele, 2007. "Exchange rate policy and export performance of WAMZ countries," MPRA Paper 6233, University Library of Munich, Germany.

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    More about this item

    Keywords

    European Monetary Union (EMU) Business cycle correlation Optimum currency areas Beta regression;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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