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European Business Cycle Convergence

Portfolio Similarity and a Declining Home Bias of Private Investors

by Jennifer Schneider (Author)
Thesis 218 Pages
Open Access
  • eBook

Summary

Is the euro area getting closer with regard to business cycles? The study investigates the linkage between business cycle convergence and financial portfolio choice for a panel of 18 European countries. For this purpose an index is constructed which measures the similarity of investment portfolios. The idea is that financial portfolio choice has an impact on business cycles and contributes to convergence via the consumption-wealth linkage. The background of the analysis is the International Asset Pricing Model (IAPM). The results of fixed effects GMM TSLS estimations confirm the linkage. The effect is higher for country-pairs that are built by one euro area member and one member outside the euro area.

Details

Pages
218
ISBN (PDF)
9783653019155
ISBN (Hardcover)
9783631639740
Open Access
CC-BY
Language
English
Publication date
2013 (December)
Published
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2013. 218 pp., 24 tables, 42 graphs

Biographical notes

Jennifer Schneider (Author)

Jennifer Schneider studied from 2001 to 2005 Economics at the University of Hohenheim and achieved her doctorate in 2011. Since 2005 she works in the field of risk management for banks.

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Title: European Business Cycle Convergence