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Endogeneity and Specialization Theories of Optimal Currency Areas: A Comparative European Study

Persson, Kristoffer LU (2011) NEKM02 20111
Department of Economics
Abstract
In this thesis the group of European countries that signed the Maastricht treaty are investigated subject to the endogeneity aspect and the specialization effect of optimal currency areas. The main method used is time series factor analysis for identification of a common European business cycle. To give the analysis a firm basis the USA is compared with European countries during the 1970-2010 period. Furthermore, the group of European countriesare analyzed for the 1970-1993 and 1993-2010 periods separately. The results point in the direction of the endogeneity aspect so far being the main aspect effecting the European countries. To further investigate the relationship between an occurrence of regional cycles in the
US the Krugman index of... (More)
In this thesis the group of European countries that signed the Maastricht treaty are investigated subject to the endogeneity aspect and the specialization effect of optimal currency areas. The main method used is time series factor analysis for identification of a common European business cycle. To give the analysis a firm basis the USA is compared with European countries during the 1970-2010 period. Furthermore, the group of European countriesare analyzed for the 1970-1993 and 1993-2010 periods separately. The results point in the direction of the endogeneity aspect so far being the main aspect effecting the European countries. To further investigate the relationship between an occurrence of regional cycles in the
US the Krugman index of specialization is deployed for both the European countries and the USA. This analysis together with the factor analysis implicates that the European countries can expect a future dominance of the specialization effect. (Less)
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author
Persson, Kristoffer LU
supervisor
organization
course
NEKM02 20111
year
type
H2 - Master's Degree (Two Years)
subject
keywords
OCA Factor Analysis EMU
language
English
id
1973762
date added to LUP
2011-06-16 15:10:26
date last changed
2011-06-16 15:10:26
@misc{1973762,
  abstract     = {In this thesis the group of European countries that signed the Maastricht treaty are investigated subject to the endogeneity aspect and the specialization effect of optimal currency areas. The main method used is time series factor analysis for identification of a common European business cycle. To give the analysis a firm basis the USA is compared with European countries during the 1970-2010 period. Furthermore, the group of European countriesare analyzed for the 1970-1993 and 1993-2010 periods separately. The results point in the direction of the endogeneity aspect so far being the main aspect effecting the European countries. To further investigate the relationship between an occurrence of regional cycles in the
US the Krugman index of specialization is deployed for both the European countries and the USA. This analysis together with the factor analysis implicates that the European countries can expect a future dominance of the specialization effect.},
  author       = {Persson, Kristoffer},
  keyword      = {OCA
Factor Analysis
EMU
},
  language     = {eng},
  note         = {Student Paper},
  title        = {Endogeneity and Specialization Theories of Optimal Currency Areas: A Comparative European Study},
  year         = {2011},
}