SELECTED WORKS

of Jaime Luque

Publications

Did the Euro Change the Effect of Fundamentals on Growth and Uncertainty?

B. E. Journal of Macroeconomics (2014)
Jaime Luque
Abderrahim Taamouti
DOWNLOAD
ABSTRACT

We present empirical evidence on whether the introduction of the euro has changed the effect of economic fundamentals on the growth rates of euro countries GDPpc and GDPpc volatility. We find that there is a statistically significant structural break in the impact of increments in government debt on both economic growth and uncertainty. In particular, after adoption of the euro increments in government debt decreased growth and increased uncertainty. These results are robust to a battery of checks, including exclusion of the recent financial crisis period, comparison with non-euro European countries, and controlling for different debt/GDP ratios.

KEYWORDS

GDP growth rate; GDP growth rate volatility; fundamentals; government debt; currency union; euro zone

DISCIPLINES

Political Economy, Public Economics and Regional Economics

PUBLICATION DATE

2014

CITATION INFORMATION

Jaime Luque and Abderrahim Taamouti. "Did the Euro Change the Effect of Fundamentals on Growth and Uncertainty?" B. E. Journal of Macroeconomics Vol. 14 Iss. 1 (2014)
Available at: http://works.bepress.com/luque/12/

CREATIVE COMMONS LICENSE

Creative Commons License
Creative Commons License This work is licensed under a Creative Commons CC_BY-NC-ND International License.

The information collected on this form is recorded on a computerised file by EESC ESCP for Customer Relationship Management, direct marketing, recruitment and selection of candidates. This information will be stored for 3 years and used by the marketing, recruitment and admissions departments.
You may exercise your rights under the General Data Protection Regulation (GDPR) including your rights to access your personal data and rectify it by contacting:
EESC ESCP Business School
3 Rue Armand Moisant 75015 Paris FRANCE

dataprotection@escp.eu