This paper explores whether similarities in production structures have been an important determinant of business cycle co-movement in the Euro Area. I construct an index of cross-country differences in industry composition using value added data from 62 sectors. Then I test whether this...

This paper uses a two-country dynamic stochastic general equilibrium model (DSGE) to study how different characteristics of an economy, such as openness or price stickiness, affect the contribution of the relative price of non-traded goods to real exchange rate fluctuations. The model shows that...