IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0509019.html

Intra & Inter-Regional Industry Shocks: A New Metric with an Application to Australasian Currency Union

Author

Listed:
  • Arthur Grimes

    (Motu Economic & Public Policy Research)

Abstract

We place regional industry structures at centre stage in currency union analysis, decomposing differences between regional and aggregate cycles into 'industry structure' and 'industry cycle' effects. The industry structure effect indicates whether a region's industry structure causes its cycle to deviate from the aggregate; the industry cycle effect indicates the importance of region-specific shocks in causing a deviation between cycles. We apply the methodology to Australasia. One region, ACT, has a material industry structure effect arising from its heavy central government concentration. No other region has a material industry structure effect; their cycles differ from the aggregate due to region-specific shocks.

Suggested Citation

  • Arthur Grimes, 2005. "Intra & Inter-Regional Industry Shocks: A New Metric with an Application to Australasian Currency Union," Macroeconomics 0509019, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0509019
    Note: Type of Document - pdf; pages: 32
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0509/0509019.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hyslop, Dean & Mare, David, 2003. "Understanding New Zealand’s Changing Income Distribution 1983–98: A Semiparametric Analysis," Motu Working Papers 293004, Motu Economic and Public Policy Research.
    2. Fabling, Richard & Grimes, Arthur, 2005. "Insolvency and economic development: Regional variation and adjustment," Journal of Economics and Business, Elsevier, vol. 57(4), pages 339-359.
    3. Arthur Grimes, 2003. "Economic Growth and the Size and Structure of Government: Implications for New Zealand," Motu Working Papers 03_10, Motu Economic and Public Policy Research.
    4. Kerr, Suzi, 2003. "Efficient Contracts For Carbon Credits From Reforestation Projects," Motu Working Papers 293005, Motu Economic and Public Policy Research.
    5. Viv B. Hall & C. John McDermott, 2007. "Regional business cycles in New Zealand: Do they exist? What might drive them?," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 167-191, June.
    6. Grimes, Arthur & Aitken, Andrew, 2004. "What’s the Beef with House Prices? Economic Shocks and Local Housing Markets," Motu Working Papers 292995, Motu Economic and Public Policy Research.
    7. John McMillan, 2004. "Quantifying creative destruction: Entrepreneurship and productivity in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(2), pages 153-173.
    8. Kerr, Suzi & Newell, Richard & Sanchirico, James, 2003. "Evaluating The New Zealand Individual Transferable Quota Market For Fisheries Management," Motu Working Papers 292981, Motu Economic and Public Policy Research.
    9. Grimes, Arthur & Kerr, Suzi & Aitken, Andrew, 2004. "Bi-Directional Impacts of Economic, Social and Environmental Changes and the New Zealand Housing Market," Motu Working Papers 292986, Motu Economic and Public Policy Research.
    10. Kerr, Suzi & Liu, Shugang & Pfaff, Alexander & Hughes, R. Flint, 2003. "Carbon Dynamics And Land-Use Choices: Building A Regional-Scale Multidisciplinary Model," Motu Working Papers 293008, Motu Economic and Public Policy Research.
    11. A.M.G Coleman & P.F.J Cruse & Rodger Greville & Alfred Y-T Wong & Arthur Grimes & Chris S. Meads, 1989. "Economic notes," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 52, December.
    12. Grimes, Arthur, 2004. "New Zealand: A Typical Australasian Economy?," Motu Working Papers 292994, Motu Economic and Public Policy Research.
    13. Arthur Grimes & Robert Sourell & Andrew Aitken, 2005. "Regional Variation in Rental Costsfor Larger Households," Urban/Regional 0509014, University Library of Munich, Germany.
    14. Grimes, Arthur & Aitken, Andrew & Kerr, Suzi, 2004. "House Price Efficiency: Expectations, Sales, Symmetry," Motu Working Papers 292987, Motu Economic and Public Policy Research.
    15. Kerr, Suzi, 2003. "Joint Implementation In Climate Change Policy," Motu Working Papers 293007, Motu Economic and Public Policy Research.
    16. Suzi Kerr, 2003. "Allocating Risks in a Domestic Greenhouse Gas Trading System," Motu Working Papers 03_01, Motu Economic and Public Policy Research.
    17. Mare, David & Timmins, John, 2003. "Moving To Jobs?," Motu Working Papers 293003, Motu Economic and Public Policy Research.
    18. Suzi Kerr & Susana Cardenas & Joanna Hendy, 2004. "Migration and the Environment in the Galapagos:An analysis of economic and policy incentives driving migration, potential impacts from migration control, and potential policies to reduce migration pressure," Others 0403001, University Library of Munich, Germany.
    19. Gibson, John, 2003. "Do Lower Expected Wage Benefits Explain Ethnic Gaps In Job-Related Training? Evidence From New Zealand," Motu Working Papers 293011, Motu Economic and Public Policy Research.
    20. Viv Hall & Angela Huang, 2004. "Would adopting the us dollar have led to improved inflation, output and trade balances, for New Zealand in the 1990s?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(1), pages 49-63.
    21. Michael A. Kouparitsas, 2001. "Is the United States an optimum currency area? an empirical analysis of regional business cycles," Working Paper Series WP-01-22, Federal Reserve Bank of Chicago.
    22. Ballantyne, Suzie & Chapple, Simon & Mare, David & Timmins, Jason, 2003. "Movements Into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement," Motu Working Papers 293012, Motu Economic and Public Policy Research.
    23. Kerr, Suzi, "undated". "Indigenous Forests and Forest Sink Policy in New Zealand," Motu Working Papers 293006, Motu Economic and Public Policy Research.
    24. Suzi Kerr, 2003. "Motu, Excellence in Economic Research and the Challenge of 'Human Dimensions' Research," General Economics and Teaching 0309001, University Library of Munich, Germany.
    25. Kerr, Suzi & Brunton, Emma & Chapman, Ralph, 2004. "Policy to Encourage Carbon Sequestration in Plantation Forests," Motu Working Papers 292983, Motu Economic and Public Policy Research.
    26. Grimes, Arthur & Kerr, Suzi & Aitken, Andrew, 2003. "Housing And Economic Adjustment," Motu Working Papers 293009, Motu Economic and Public Policy Research.
    27. Kerr, Suzi & Aitken, Andrew & Grimes, Arthur, 2004. "Land Taxes and Revenue Needs as Communities Grow and Decline: Evidence from New Zealand," Motu Working Papers 292982, Motu Economic and Public Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viv Hall & John McDermott, 2008. "An Unobserved Components Common Cycle For Australia? Implications For A Common Currency," CAMA Working Papers 2008-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Sebastian Edwards, 2006. "External Imbalances in an Advanced, Commodity-Exporting Country: The Case of New Zealand," NBER Working Papers 12620, National Bureau of Economic Research, Inc.
    3. Grimes, Arthur, 2005. "Regional and industry cycles in Australasia: Implications for a common currency," Journal of Asian Economics, Elsevier, vol. 16(3), pages 380-397, June.
    4. David C. Maré & Michelle Poland, 2005. "Defining Geographic Communities," Motu Working Papers 05_09, Motu Economic and Public Policy Research.
    5. Viv B. Hall & C. John McDermott, 2012. "Is there an unobserved components common cycle for Australasia? Implications for a common currency," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(2), pages 119-141, September.
    6. Arthur Grimes, 2007. "Trans-Tasman shocks: A mediating role for the NZDAUD," New Zealand Economic Papers, Taylor & Francis Journals, vol. 41(2), pages 237-250.
    7. Viv Hall & John McDermott, 2008. "An Unobserved Components Common Cycle For Australia? Implications For A Common Currency," CAMA Working Papers 2008-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David C. Maré & Michelle Poland, 2005. "Defining Geographic Communities," Motu Working Papers 05_09, Motu Economic and Public Policy Research.
    2. Grimes, Arthur, 2005. "Regional and industry cycles in Australasia: Implications for a common currency," Journal of Asian Economics, Elsevier, vol. 16(3), pages 380-397, June.
    3. Mare, David, 2005. "Indirect Effects of Active Labour Market Policies," Motu Working Papers 292900, Motu Economic and Public Policy Research.
    4. Grimes, Arthur & Aitken, Andrew, 2004. "What’s the Beef with House Prices? Economic Shocks and Local Housing Markets," Motu Working Papers 292995, Motu Economic and Public Policy Research.
    5. Grimes, Arthur & Kerr, Suzi & Aitken, Andrew, 2004. "Bi-Directional Impacts of Economic, Social and Environmental Changes and the New Zealand Housing Market," Motu Working Papers 292986, Motu Economic and Public Policy Research.
    6. Sin, Isabelle & Kerr, Suzi & Hendy, Joanna, 2005. "Taxes vs Permits: Options for Price-Based Climate Change Regulation," Motu Working Papers 292898, Motu Economic and Public Policy Research.
    7. Hall, Viv & McDermott, John & Tremewan, James, 2006. "The Ups and Downs of New Zealand House Prices," Motu Working Papers 292874, Motu Economic and Public Policy Research.
    8. Arthur Grimes, 2005. "Intra & Inter-Regional Shocks: A New Metric with an Application to Australasian Currency Union," Motu Working Papers 05_03, Motu Economic and Public Policy Research.
    9. Kerr, Suzi & Hendy, Joanna & Liu, Shuguang & Pfaff, Alexander, 2004. "Tropical Forest Protection, Uncertainty, and the Environmental Integrity of Carbon Mitigation Policies," Motu Working Papers 292991, Motu Economic and Public Policy Research.
    10. Grimes, Arthur, 2004. "New Zealand: A Typical Australasian Economy?," Motu Working Papers 292994, Motu Economic and Public Policy Research.
    11. Viv B. Hall & C. John McDermott, 2021. "Changes in New Zealand's business insolvency rates after the GFC," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(2), pages 173-187, May.
    12. Hall, Viv & McDermott, John, 2019. "Changes in New Zealand’s Business Insolvency Rates after the GFC," Working Paper Series 8251, Victoria University of Wellington, School of Economics and Finance.
    13. Grimes, Arthur & Mare, David & Morten, Melanie, 2007. "Adjustment in Local Labour and Housing Markets," Motu Working Papers 292850, Motu Economic and Public Policy Research.
    14. Grimes, Arthur & Aitken, Andrew, 2006. "Housing Supply and Price Adjustment," Motu Working Papers 292873, Motu Economic and Public Policy Research.
    15. Viv Hall & John McDermott, 2008. "An Unobserved Components Common Cycle For Australia? Implications For A Common Currency," CAMA Working Papers 2008-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    16. Arthur Grimes & Robert Sourell & Andrew Aitken, 2005. "Regional Variation in Rental Costs for Larger Households," Motu Working Papers 05_02, Motu Economic and Public Policy Research.
    17. Suzi Kerr & Andrew Aitken & Arthur Grimes, 2004. "Land Taxes and Revenue Needs as Communities Grow and," Public Economics 0403001, University Library of Munich, Germany.
    18. Arthur Grimes & Andrew Aitken, 2010. "Housing Supply, Land Costs and Price Adjustment," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 325-353, June.
    19. Emma Xiaoqin Fan & Jesus Felipe, 2005. "The diverging patterns of profitability, investment and growth of China and India, 1980-2003," CAMA Working Papers 2005-22, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    20. Stillman, Steven & Maré, David C., 2008. "Housing Markets and Migration: Evidence from New Zealand," Motu Working Papers 292651, Motu Economic and Public Policy Research.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0509019. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA The email address of this maintainer does not seem to be valid anymore. Please ask EconWPA to update the entry or send us the correct address (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.