. The model captures the most salient features of Austria as a small open economy, the Euro Area (EA) and the United States … derived from Bayesian estimation and simulation of the estimated model. Welfare calculations from the estimated model suggest …

react stronger to demand shocks, while in the rest of the Euro Area supply shocks have a stronger impact. Comparing the … estimations on pre-EMU and EMU subsamples we find that the contribution of (rest of the) Euro Area shocks to Austria's business …