Asymmetric macroeconomic volatility in European regions. Issue 2 (3rd July 2017)

• Record Type: Journal Article
• Authors: Fiaschi, Davide; Gianmoena, Lisa; Parenti, Angela
• Is Part Of: Spatial economic analysis. Volume 12:Issue 2/3(2017)
• Page Start: 251
• Page End: 278
• Publication Date: 2017-07-03
• Subjects: spatial panel model -- output composition -- output concentration -- government expenditure -- financial deepening -- European Monetary Union (EMU); 空间面板模型 -- 产出组成 -- 产出集中 -- 政府支出 -- 金融深化 -- 欧洲货币联盟（EMU）; modèle à panneau spatial -- composition en sortie -- concentration de la sortie -- dépenses gouvernementales -- approfondissement des marchés financiers -- Union monétaire européenne; modelo de panel espacial -- composición de la producción -- concentración de la producción -- gasto público -- profundización financiera -- Unión Monetaria Europea (UME); C23 -- E32 -- N14 -- O40; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2017.1276300
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: Asymmetric macroeconomic volatility in European regions. Spatial Economic Analysis . This paper investigates, on the basis of a theoretical spatial model, the determinants of macroeconomic volatility of per capita gross domestic product (GDP) in a panel of 257 NUTS-2 European regions in 1992–2008, considering positive and negative fluctuations separately. Evidence is found of strong positive spatial dependence, and of considerable asymmetric effects on macroeconomic volatility of sectoral output (its composition and concentration), of composition of aggregate demand, and of other regional/country characteristics. In particular, while public expenditure exerts a stabilizing effect on both types of fluctuations, financial depth amplifies negative fluctuations. Finally, inflation fluctuations and participation in European Monetary Union (EMU) appear to have no effect on macroeconomic volatility.