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Network Models in Economics and Finance pp 265–275Cite as

European Business Cycle Synchronization: A Complex Network Perspective

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Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 100))

Abstract

In this paper we attempt to provide empirical evidence on the issue of business cycle synchronization within Europe. The issue of business cycle convergence is important and very topical as it is a prerequisite for the implementation of an effective and successful monetary policy within a monetary union. We employ Complex Network metrics and we identify the corresponding Minimum Dominating Set of 22 European countries in terms of their GDP growth. An obvious focal point for our comparison of business cycle convergence is the adoption of a common currency (the euro) in 1999. By doing so, we reveal the evolution of GDP growth co-movement patterns of the European economies before and after the introduction of the euro. The main findings from our empirical analysis provide evidence in favor of macroeconomic convergence after the introduction of the common currency.

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Authors and Affiliations

  1. Department of Economics, Democritus University of Thrace, Athanasiou Parianou 8, Komotini, Rodopi, 69100, Greece

    Theophilos Papadimitriou, Periklis Gogas & Georgios Antonios Sarantitis

Authors
  1. Theophilos Papadimitriou
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  2. Periklis Gogas
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  3. Georgios Antonios Sarantitis
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Corresponding author

Correspondence to Georgios Antonios Sarantitis .

Editor information

Editors and Affiliations

  1. Laboratory of Algorithms and Technologies for Network Analysis, National Research University, Higher School of Economics, Nizhny Novgorod, Russia

    Valery A. Kalyagin

  2. Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida, USA

    Panos M. Pardalos

  3. Department of Mathematics, National Technical University of Athens, Athens, Greece

    Themistocles M. Rassias

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Papadimitriou, T., Gogas, P., Sarantitis, G.A. (2014). European Business Cycle Synchronization: A Complex Network Perspective. In: Kalyagin, V., Pardalos, P., Rassias, T. (eds) Network Models in Economics and Finance. Springer Optimization and Its Applications, vol 100. Springer, Cham. https://doi.org/10.1007/978-3-319-09683-4_13

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