Title: On what drives regional business cycles in Europe
Authors: Ana Gomez-Loscos - Bank of Spain (Spain) [presenting]
Lola Gadea - University of Zaragoza (Spain)
Eduardo Bandres - Universidad de Zaragoza (Spain)
Abstract: The aim is twofold. First, to identify regional business cycles in Europe, obtaining datings of business cycles that allow us to identify possible groups of regions and to assess how interdependence in European regions has changed over time, paying special attention both to the euro cash changeover and the global financial crisis. Second, to determine the driving forces behind each group of regions, that is, to identify the economic, cultural and social factors that may help explain regional business cycles. We identify five different groups of European regions. Moreover, we find an increase over time in regional business cycle synchronization. We detect that the variables that play the most important role to identify groups of regions are those related to well-being and geography and culture.