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Constructing Historical Euro-Zone Data

Author

Listed:
  • Beyer, A.
  • Doornik, J.A.
  • Hendry, D.F.

Abstract

Existing methods of reconstructing historical Euro-zone data by aggregation of the individual countries' data raises numerous difficulties due to past exchange rate changes. The approach proposed here is designed to avoid such distortions, and aggregate exactly when exchange rates are fixed. In a simple 'Divisa-style' approach, we first compute growth rates within states, aggregate these, them cumulate this Euro-zone growth rate to obtain the aggregated levels variables. We investigate the properties of this growth hrate method for aggregation and construct Euro-zone measures for M3, GDP and prices over the previous two decades.

Suggested Citation

  • Beyer, A. & Doornik, J.A. & Hendry, D.F., 2000. "Constructing Historical Euro-Zone Data," Economics Working Papers eco2000/10, European University Institute.
  • Handle: RePEc:eui:euiwps:eco2000/10
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    Keywords

    EUROPE ; ECONOMIC HISTORY;

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N00 - Economic History - - General - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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