Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union
This paper analyses synchronization in business cycles across the European Union (EU) since 1989. We include both old and new European Union members and countries which are currently negotiating accession, as well as potential European Union members. Our methodological approach is based on the corre...
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Basel: Center for Research in Economics, Management and the Arts (CREMA)
2012
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ftzbwkiel:oai:econstor.eu:10419/214505 2023-12-24T10:17:53+01:00 Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union Gomez, David Matesanz Ortega, Guillermo J. Torgler, Benno 2012 http://hdl.handle.net/10419/214505 eng eng Basel: Center for Research in Economics, Management and the Arts (CREMA) Series: CREMA Working Paper No. 2012-01 http://hdl.handle.net/10419/214505 RePEc:cra:wpaper:2012-01 http://www.econstor.eu/dspace/Nutzungsbedingungen ddc:330 E32 C45 O47 Business cycle synchronization European Union countries EU candidates complex systems network topology doc-type:workingPaper 2012 ftzbwkiel 2023-11-27T00:42:28Z This paper analyses synchronization in business cycles across the European Union (EU) since 1989. We include both old and new European Union members and countries which are currently negotiating accession, as well as potential European Union members. Our methodological approach is based on the correlation matrix and the networks within, which allows us to summarize the individual interaction and co-movement, while also capturing the existing heterogeneity of connectivity within the European economic system. The results indicate that the synchronization of the old EU countries remained stable until the current financial crisis. Additionally, the synchronization of the new and potential members has approached to the old EU members although we observe the existence of different synchronization levels and dynamics in output growth in single countries as well as in groups of countries. Some countries have achieved an important degree of co-movement (such as the Baltic Republics, Hungary, Slovenia and Iceland), while others have experienced reduced synchronization, or even desynchronization (such as Romania, Bulgaria and even Greece and Ireland). Report Iceland EconStor (German National Library of Economics, ZBW) |
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EconStor (German National Library of Economics, ZBW) |
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English |
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ddc:330 E32 C45 O47 Business cycle synchronization European Union countries EU candidates complex systems network topology |
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ddc:330 E32 C45 O47 Business cycle synchronization European Union countries EU candidates complex systems network topology Gomez, David Matesanz Ortega, Guillermo J. Torgler, Benno Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
topic_facet |
ddc:330 E32 C45 O47 Business cycle synchronization European Union countries EU candidates complex systems network topology |
description |
This paper analyses synchronization in business cycles across the European Union (EU) since 1989. We include both old and new European Union members and countries which are currently negotiating accession, as well as potential European Union members. Our methodological approach is based on the correlation matrix and the networks within, which allows us to summarize the individual interaction and co-movement, while also capturing the existing heterogeneity of connectivity within the European economic system. The results indicate that the synchronization of the old EU countries remained stable until the current financial crisis. Additionally, the synchronization of the new and potential members has approached to the old EU members although we observe the existence of different synchronization levels and dynamics in output growth in single countries as well as in groups of countries. Some countries have achieved an important degree of co-movement (such as the Baltic Republics, Hungary, Slovenia and Iceland), while others have experienced reduced synchronization, or even desynchronization (such as Romania, Bulgaria and even Greece and Ireland). |
format |
Report |
author |
Gomez, David Matesanz Ortega, Guillermo J. Torgler, Benno |
author_facet |
Gomez, David Matesanz Ortega, Guillermo J. Torgler, Benno |
author_sort |
Gomez, David Matesanz |
title |
Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
title_short |
Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
title_full |
Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
title_fullStr |
Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
title_full_unstemmed |
Synchronization and Diversity in Business Cycles: A Network Approach Applied to the European Union |
title_sort |
synchronization and diversity in business cycles: a network approach applied to the european union |
publisher |
Basel: Center for Research in Economics, Management and the Arts (CREMA) |
publishDate |
2012 |
url |
http://hdl.handle.net/10419/214505 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
Series: CREMA Working Paper No. 2012-01 http://hdl.handle.net/10419/214505 RePEc:cra:wpaper:2012-01 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
_version_ |
1786206302498717696 |