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Capital Controls in Greece: Effects in consumption and imports using the synthetic control method

Delvenakioti, Eleni Anna LU (2017) NEKN02 20171
Department of Economics
Abstract
This paper studies the implementation of capital controls in Greece and examines their impact on consumption and imports. The dataset consists of the quarterly country-level macroeconomic variables, per capita final consumption expenditure of households, per capita imports of goods and services and per capita exports of goods and services, of 10 countries for the period 2010-2016. The method applied and aiming to estimate the effect of capital controls is the synthetic control, which is based on the existence of an intervention of interest. Synthetic control method separates the timeline in pre- and post-capital controls periods and categorizes the countries in treated and untreated, and, using the characteristics of the untreated in the... (More)
This paper studies the implementation of capital controls in Greece and examines their impact on consumption and imports. The dataset consists of the quarterly country-level macroeconomic variables, per capita final consumption expenditure of households, per capita imports of goods and services and per capita exports of goods and services, of 10 countries for the period 2010-2016. The method applied and aiming to estimate the effect of capital controls is the synthetic control, which is based on the existence of an intervention of interest. Synthetic control method separates the timeline in pre- and post-capital controls periods and categorizes the countries in treated and untreated, and, using the characteristics of the untreated in the pre-intervention period, it creates a counterfactual that represents the trajectory of the treated country in the absence of the intervention. After applying the synthetic control twice, using consumption as the outcome variable at the first application and imports at the second, the findings show that there is a short-term negative effect of capital controls on both consumption and imports in Greece. (Less)
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author
Delvenakioti, Eleni Anna LU
supervisor
organization
course
NEKN02 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
Capital Controls, Greece, Synthetic Control Method
language
English
id
8925487
date added to LUP
2017-09-12 15:24:12
date last changed
2017-09-12 15:24:12
@misc{8925487,
  abstract     = {This paper studies the implementation of capital controls in Greece and examines their impact on consumption and imports. The dataset consists of the quarterly country-level macroeconomic variables, per capita final consumption expenditure of households, per capita imports of goods and services and per capita exports of goods and services, of 10 countries for the period 2010-2016. The method applied and aiming to estimate the effect of capital controls is the synthetic control, which is based on the existence of an intervention of interest. Synthetic control method separates the timeline in pre- and post-capital controls periods and categorizes the countries in treated and untreated, and, using the characteristics of the untreated in the pre-intervention period, it creates a counterfactual that represents the trajectory of the treated country in the absence of the intervention. After applying the synthetic control twice, using consumption as the outcome variable at the first application and imports at the second, the findings show that there is a short-term negative effect of capital controls on both consumption and imports in Greece.},
  author       = {Delvenakioti, Eleni Anna},
  keyword      = {Capital Controls,Greece,Synthetic Control Method},
  language     = {eng},
  note         = {Student Paper},
  title        = {Capital Controls in Greece: Effects in consumption and imports using the synthetic control method},
  year         = {2017},
}