Article ID Journal Published Year Pages File Type
5054979 Economic Modelling 2012 5 Pages PDF
Abstract
► We analyze macro-financial linkages in the euro area. ► An innovative factor-augmented probit model is put forward. ► We find that financial variables play a leading role in the business cycles. ► Dynamic factor models allow a better goodness-of-fit than static ones.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Macro-financial linkages and business cycles: A factor-augmented probit approach
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