Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/40295 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
Research Notes No. 8
Publisher: 
Deutsche Bank Research, Frankfurt a. M.
Abstract: 
The accession of several Central and Eastern European Countries to Euroland is likely to be realised within the next years. Some studies aim at analysing the suitability of these Euro aspirants for currency union with EMU by evaluating the related macroeconomic costs. Still, they are prone to the Lucas critique since they do not consider endogeneity of the relevant criteria. We build on methodologies developed with regard to the theory of optimum currency areas in the context of present EMU and use a structural VAR approach to evaluate EMU suitability of the candidate countries. To correct for the widespread flaw of previous studies we use lagged time series to account for endogeneities. An evaluation of the changing country characteristics within the process of integration in Western Europe confirms the importance of this approach.
Subjects: 
OCA
EMU
shock analysis
Eastern enlargement
JEL: 
E42
F33
F36
Document Type: 
Working Paper

Files in This Item:
File
Size
867.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.