Demand and supply shock symmetry across Polish voivodeships
Demand and supply shock symmetry across Polish voivodeships
Author(s): Paweł GajewskiSubject(s): Economy, Geography, Regional studies, National Economy
Published by: EUROREG - Uniwersytet Warszawski, Regional Studies Association - Sekcja Polska
Keywords: demand shocks; supply shocks; voivodeships; monetary policy
Summary/Abstract: The aim of this paper is to evaluate the symmetry of demand and supply shocks affecting Polish voivodeships and to assess the risk of asymmetric shocks in the future. The study employs the SVAR-based Blanchard and Quah (1989) decomposition as modified by Bayoumi and Eichengreen (1992), and uses a new method of estimating quarterly GDP by voivodeships. The results point to a relatively high symmetry of shocks and a rather low risk of their occurrence. Shock asymmetry does not appear to be strongly related to differences in production structures, which is claimed in most theoretical approaches, including the Optimum Currency Areas Theory.
Journal: Studia Regionalne i Lokalne
- Issue Year: 19/2018
- Issue No: 73
- Page Range: 50-69
- Page Count: 20
- Language: English