| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060143 | Economics Letters | 2011 | 5 Pages |
Abstract
The endogeneity of optimum currency area criteria has been widely studied. Literature suggests the existence of a positive relationship between trade intensity and business cycle correlation. Using a beta regression model for the Eurozone we have concluded that trade has a decreasing marginal effect on business cycle correlation.
⺠We model business cycle correlation and trade intensity in the Eurozone. ⺠We use a beta regression approach. ⺠The results confirmed the endogeneity of optimum currency areas. ⺠However, trade has a decreasing marginal effect on business cycle correlation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
António Mendonça, João Silvestre, José Passos,