Quotation Prettner, Klaus, Kunst, Robert. 2012. The Dynamic Interrelations between Unequal Neighbors: An Austro-German Case Study. Empirical Economics. 43 741-761.




This article investigates the effects and the transmission of shocks between asymmetric neighboring countries. In particular, we investigate Austria and Germany which are highly integrated due to their common language and common membership of the European Monetary Union. Generalized impulse response functions reveal large and significant effects of shocks to the German economy on Austria. By contrast, the effects of shocks to the Austrian economy on Germany are barely significant and if they are, their magnitude is small. Furthermore, we can show that multiplier effects exist in Germany but not in Austria and we identify hysteretic properties in Austrian unemployment.


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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Empirical Economics
Citation Index SSCI
WU-Journal-Rating new VW-D
Language English
Title The Dynamic Interrelations between Unequal Neighbors: An Austro-German Case Study
Volume 43
Year 2012
Page from 741
Page to 761
Reviewed? Y
URL https://link.springer.com/article/10.1007/s00181-011-0504-x
DOI https://doi.org/10.1007/s00181-011-0504-x
Open Access N


Prettner, Klaus (Details)
Kunst, Robert (Universit├Ąt Wien, Austria)
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