Benefits of EMU Participation: Estimates using the Synthetic Control Method

Loes Verstegen, Bas van Groezen, Lex Meijdam

Research output: Working paperDiscussion paperOther research output

Abstract

This paper investigates quantitatively the benefits from participation in the Economic and Monetary Union for individual Euro area countries. Using the synthetic control method, we estimate how real GDP per capita would have developed for the EMU member states, if those countries had not joined the EMU. The estimates show that most countries have profited from having the euro, though the crisis leads to negative effects of EMU membership. The PIGS countries, in particular, would have been better off if they had not been an EMU member during the crisis, however, Greece, Portugal and Spain experienced the largest benefits of EMU participation in the pre-crisis period.
LanguageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages66
Volume2017-032
StatePublished - 28 Aug 2017

Publication series

NameCentER Discussion Paper
Volume2017-032

Fingerprint

Participation
Real GDP
Spain
Greece
GDP per capita
Economic and monetary union
Portugal
Euro area

Keywords

  • economic growth
  • euro area
  • synthetic control method
  • monetary union

Cite this

Verstegen, L., van Groezen, B., & Meijdam, L. (2017). Benefits of EMU Participation: Estimates using the Synthetic Control Method. (CentER Discussion Paper; Vol. 2017-032). Tilburg: CentER, Center for Economic Research.
Verstegen, Loes ; van Groezen, Bas ; Meijdam, Lex. / Benefits of EMU Participation : Estimates using the Synthetic Control Method. Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper).
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Verstegen, L, van Groezen, B & Meijdam, L 2017 'Benefits of EMU Participation: Estimates using the Synthetic Control Method' CentER Discussion Paper, vol. 2017-032, CentER, Center for Economic Research, Tilburg.

Benefits of EMU Participation : Estimates using the Synthetic Control Method. / Verstegen, Loes; van Groezen, Bas; Meijdam, Lex.

Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper; Vol. 2017-032).

Research output: Working paperDiscussion paperOther research output

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Verstegen L, van Groezen B, Meijdam L. Benefits of EMU Participation: Estimates using the Synthetic Control Method. Tilburg: CentER, Center for Economic Research. 2017 Aug 28, (CentER Discussion Paper).