stochastic trend

Convergence and Cycles in the Euro Zone

JEL codes: 
C32, O40
Version Date: 
Oct 2004

Multivariate unobserved components (structural) time series models are fitted to annual post-war observations on real income per capita in countries in the euro zone. The aim is to establish stylized facts about convergence as it relates both to long-run income levels and to cycles.

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