Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264729 
Year of Publication: 
2007
Series/Report no.: 
Working Paper No. 137
Publisher: 
Oesterreichische Nationalbank (OeNB), Vienna
Abstract: 
This paper analyses the comovement of the German and Austrian economies and the transmission of German shocks to Austria. Static and dynamic correlation measures show a strong comovement and a change of the relative position in time of these two economies. The transmission of German shocks to Austria is analysed with a two-country VAR model. Using sign restrictions on impulse response functions, we identify German supply, demand and monetary policy shocks. We find that the average reaction of the Austrian economy to German shocks amounts to 44% of the German reaction and remains broadly stable over time.
Subjects: 
business cycle
synchronization
vector autoregression
shock transmission
Austria
Germany
JEL: 
C32
E32
F41
Document Type: 
Working Paper

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