Properties Of The Data ( 300 Essay

1901 Words Mar 8th, 2015 8 Pages
2. Properties of the data(300
In the first step, two periods have been considered in summarize properties of times series for output and its components. Period one is PreEMU and period two is EMU. The premise of using this sample by authors is that the business cycle fluctuation became more stable start from the mid-1980s. However, they found that output volatility have decreased before the crisis relative to the pre-EMU sample and not only emerged in EMU countries but also to the control group. Compare with the full EMU sample with the pre-EMU sample, we observed that output volatility have sluggishly risen. Additionally, according to cross-country correlations, the paper shows an raising comovement in the period of pre-EMU sample. While this increase is found in pre-crisis period with EMU countries and full sample with non-EMU countries.

According to the research by authors, there is no systematic change in the volatility of trade flows by EMU, the volatility of the real exchange rate have a considerable decreased. A substantial raise of output correlations in the research is under EMU it emerged before the crisis, outside the EMU it only in the period of crisis. This paper also shows systematic raises in the comovement of consumption and investment. However, the cross-country correlation of investment rises for non-EMU countries as well. The cross-country correlation of government spending decreased for countries but raises across non-EMU countries. Additionally, the…

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