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| Maria Jesús Delgado-Rodriguez and Sonia De lucas-Santos |
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| ''Testing cyclical convergence with the factor model in the Euro Area'' |
| ( 2013, Vol. 33 No.3 ) |
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| In this paper we use the factor model and propose a parametric approach to investigate the process of cyclical convergence in the Euro Area (EA) over the period 1989-2011. Our results show that despite the fact that EA countries share a common business cycle, further convergence after the run-up period to the euro is found not to have been reached. |
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| Keywords: Business cycle, Factor loadings, Structural Stability, Cyclical convergence |
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
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| Manuscript Received : Aug 16 2013 | | Manuscript Accepted : Sep 03 2013 |
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