Common and spatial drivers in regional business cycles

Michael Artis, Christian Dreger and Konstantin Kholodilinf

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We examine real business cycle convergence for 41 euro area regions and 48 US states. Results obtained by a panel model with spatial correlation indicate that the relevance of common business cycle factors is rather stable over the past two decades in the euro area and the US. Ongoing business cycle convergence often detected in cross-country data is not confirmed at the regional level. The degree of synchronization across the euro area is similar to that to be found for the US states. Thus, the lack of convergence does not seem to be an impediment to a common monetary policy.

JEL-codes: L81 N0 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2009-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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http://eprints.lse.ac.uk/33213/ Open access version. (application/pdf)

Related works:
Working Paper: Common and Spatial Drivers in Regional Business Cycles (2009)
Working Paper: Common and Spatial Drivers in Regional Business Cycles (2009)
Working Paper: Common and Spatial Drivers in Regional Business Cycles (2009)
Working Paper: Common and spatial drivers in regional business cycles (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:33213

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