The euro's trade effect under cross-sectional heterogeneity and stochastic resistance

Arbeitspapier

This paper investigates if the euro's effect on euro-area trade differs across trade sectors and across country pairs, and to what degree heterogeneity matters for estimating the aggregate euro effect. Time-varying latent variables, which are specific to each sector in each country pair, control for omitted trade costs and mismeasured resistance terms. Parameter heterogeneity and time-varying latent variables are both strongly supported by the data. Due to decreasing trade costs, aggregate exports within the euro area increase between 2000 and 2002 by 15 to 25 percent compared with aggregate exports between European economies which are not members of the euro area. Adjustment within individual sectors is rapid whereas aggregate adjustment is more spread out and gradual since different sectors adjust at distinct times.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1631

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Trade Policy; International Trade Organizations ; Economic Integration ; International Monetary Arrangements and Institutions ; International Policy Coordination and Transmission
• Thema: Euro's trade effect ; parameter heterogeneity ; smooth-transition model ; Euro ; Europäische Wirtschafts- und Währungsunion ; Außenhandelseffekt ; EU-Binnenhandel ; Schätzung ; Eurozone

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Herwartz, Helmut ; Weber, Henning
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/37095
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ