Currency Union Effects on Retail Sales
Open Access
- Author:
- Gajda, Philip
- Area of Honors:
- Economics
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Stephen Ross Yeaple, Thesis Supervisor
Sung Jae Jun, Thesis Honors Advisor - Keywords:
- Economics
- Abstract:
- This study examines whether Euro adoption influenced retail sales level and volatility in select European economies from 1995 to 2007. Using a difference-in difference framework, it compares final household consumption patterns in Euro adopting countries (Italy, France Germany, and Greece) against non-Euro adopting control countries (Denmark and the United Kingdom) to identify the currency unions effects. Results show that there was a statistically significant 1% increase in private final consumption share of income for Euro adopting members post adoption. On the other hand, a GARCH model that analyzed consumption volatility found no significant change in volatility, highlighting the Eurozone’s limitations. These findings contribute to the Optimal Currency Area debate and inform policymakers considering currency union membership. Future research could expand these findings generalizability by looking at other currency unions or looking at a more heterogeneous volatility model.
Accessible Version in Progress
We're generating an accessible version of this file to meet ADA Title II requirements. This process may take up to one hour. Please return later to access the accessible copy once it's ready.
You can still download the current version by clicking "OK".
What's happening:
An accessible PDF is being generated using Adobe with AI used to generate alternative text (alt text) for images in the PDF.