Convergence in gross domestic product series of five European countriesis empirically identified using multivariate … time series models that arebased on unobserved components with dynamic converging properties.We define convergence in terms ….The inclusion of such convergence mechanisms within the formulation ofunobserved components makes the identification of various …

uncertainty, a stochastic version of the Ramsey modelwith livestock as the single asset. We use the estimation results in … simulation experiments(over a 20-year period) to quantify the importance of convergence, household fixed effectsand shocks. First …, we find powerful convergence. In the absence of shocks and withouthousehold fixed effects there is rapid growth over the …

-run effectiveness of government spending in stabilizing real GDP and private consumption has increased until the end-1980s but it has … multipliers. We find that a higher ratio of credit to households over GDP, a smaller share of government investment and a larger …, our results indicate that higher government debt-to-GDP ratios have negatively affected long-term multipliers. …

largest euro area countries over the period 1970 to 2014. We find that credit, the credit-to-GDP ratio and house prices have …