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Analyzing macroeconomic imbalances in the EU

Author

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  • Tomáš Domonkos
  • Filip Ostrihoň
  • Ivana Šikulová
  • Maria Širaňová

Abstract

This research aims to evaluate the efficiency of the currently applied MIP Scoreboard’s indicators. The question we want to answer is that: If this procedure had been applied before the crisis, would it have been able to effectively and on time identify potential macroeconomic imbalances in the EU countries? In order to answer this question, we examine the behavior of the MIP Scoreboard’s indicators in terms of the business cycle. The analysis relies mostly on binary response models and on signaling approach. The data used cover the time period from 2004 till 2014. The results of this study aim to improve the MIP procedure and identify useful amendments to the set of indicators used in the crisis-identification procedure. This would result in better and more target-oriented policies and help avoid adverse macroeconomic development across European countries.

Suggested Citation

  • Tomáš Domonkos & Filip Ostrihoň & Ivana Šikulová & Maria Širaňová, 2016. "Analyzing macroeconomic imbalances in the EU," EcoMod2016 9660, EcoMod.
    • Handle: RePEc:ekd:009007:9660
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    Cited by:

    1. Maria Siranova & Marek Radvanský, 2018. "Performance of the Macroeconomic Imbalance Procedure in light of historical experience in the CEE region," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 21(4), pages 335-352, October.

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    Keywords

    EU; Macroeconometric modeling; Impact and scenario analysis;
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