Modelling large open economies with international linkages: The usa and euro area
Empirical modelling of the linkages between the euro area and the USA requires an open economy framework. The methodology proposed in this paper achieves identification of a structural vector error correction model by supplementing restrictions from economic theory with assumptions for the direction of causality in cross-country contemporaneous relationships. Our baseline model assumes contemporaneous causality runs from the USA to the euro area for both output and inflation, with monetary...[Show more]
|Collections||ANU Research Publications|
|Source:||Journal of Applied Econometrics|
|01_Dungey_Modelling_large_open_economies_2013.pdf||648.86 kB||Adobe PDF||Request a copy|
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