Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77020
Authors: 
Dreger, Christian
Year of Publication: 
2003
Series/Report no.: 
IWH Discussion Papers 181
Abstract: 
In this paper a structural macroeconometric model for the Eurozone is presented. In opposite to the multi country modelling approach, the model relies on aggregate data on the supra-national level. Due to nonstationarity, all equations are estimated in an error correction form. The cointegrating relations are derived jointly with the short-run dynamics, avoiding the finite sample bias of the two step Engle Granger procedure. The validity of the aggregated approach is confirmed by out-of-sample forecasts and two simulation exercises. In particular the implications of a lower economic recovery in the US and a shock in the nominal Euro area interest rate are discussed.
Subjects: 
Euro area economy
macroeconometric models
error correction
JEL: 
C3
C5
F01
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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