Advanced Search
MyIDEAS: Login

Assessing the Endogeneity of OCA Conditions in EMU

Contents:

Author Info

  • Carlos Vieira

    ()
    (Departamento de Economia, Universidade de Évora and CEFAGE-UE)

  • Isabel Vieira

    ()
    (Departamento de Economia, Universidade de Évora and CEFAGE-UE)

Abstract

The academic and political discussion about which countries met the conditions for joining EMU was decisively influenced by the Frankel and Rose (1997) hypothesis concerning endogenous OCA properties. The answer to their question "Is EMU more justifiable ex post than ex ante?" was a definite yes in their ex ante analysis. Our ex post examination of the euro's first decade, however suggests that the hypothesis does not hold for some countries. This paper utilizes panel data estimation techniques to compute OCA indices that help assess the OCA endogeneity hypothesis and signal current external and fiscal imbalances.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cefage.uevora.pt/en/content/download/3045/40694/version/1/file/2011_01.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2011_01.

as in new window
Length: 21 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:cfe:wpcefa:2011_01

Contact details of provider:
Postal: Colégio Espírito SANTO
Phone: (351) 266 740 869
Email:
Web page: http://www.cefage.uevora.pt
More information through EDIRC

Related research

Keywords: Optimum currency areas; OCA index; Monetary union.;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Harris Dellas & George S.Tavlas, 2009. "An Optimum-Currency-Area Odyssey," Working Papers 102, Bank of Greece.
  2. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, 06.
  3. Nicos Christodoulakis, 2008. "Ten years of EMU: Convergence, Divergence and New Policy Priorities," Research and Policy Notes 2008/01, Czech National Bank, Research Department.
  4. Olivier Blanchard, 2007. "Current Account Deficits in Rich Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 54(2), pages 127-158, June.
  5. Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-25, July.
  6. Frankel, Jeffrey A. & Rose, Andrew K., 1997. "Is EMU more justifiable ex post than ex ante?," European Economic Review, Elsevier, vol. 41(3-5), pages 753-760, April.
  7. Roman Horvath, 2005. "Exchange rate variability, pressures and optimum currency area criteria: some empirical evidence from the 1990s," Applied Economics Letters, Taylor & Francis Journals, vol. 12(15), pages 919-922.
  8. Robert Shelburne, 2008. "Current Account Deficits in European Emerging Markets," ECE Discussion Papers Series 2008_2, UNECE.
  9. Martin Cincibuch, David Vávra, 2001. "Toward the European Monetary Union - A Need for Exchange Rate Flexibility?," Eastern European Economics, M.E. Sharpe, Inc., vol. 39(6), pages 23-63, November.
  10. Kim, Yoonbai & Chow, Hwee Kwan, 2003. "Optimum currency area in Europe: an alternative assessment," Economics Letters, Elsevier, vol. 81(3), pages 297-304, December.
  11. repec:ebl:ecbull:v:6:y:2008:i:12:p:1-10 is not listed on IDEAS
  12. Rainer Schweickert, 2001. "Assessing the Advantages of EMU-Enlargement for the EU and the Accession Countries: A Comparative Indicator Approach," Kiel Working Papers 1080, Kiel Institute for the World Economy.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cfe:wpcefa:2011_01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Pacheco).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.