The Impact of the European Single Market on the Austrian Economy under Alternative Assumptions about Global and National Policy Reactions
In this paper, we explore the macroeconomic effects
of the European Single Market on Austria by simulating the
McKibbin-Sachs Global Model. Global interdependences and the
impact of long-run effects on short-run adjustments are taken into
account. We study the sensitivity of the results with respect to
different assumptions concerning monetary and fiscal policies for the
countries and regions of the world economy. The consequences of
different assumptions about budgetary policies in Austria are also
investigated. The simulation results are contrasted with ex-post
evaluations of the actual impact of Austria’s membership in the
Single Market. As a result, it can be concluded that the Austrian
participation in the European Single Market entails considerable
long-run gains for the Austrian economy with nearly no adverse sideeffects
on any macroeconomic target variable.
[1] F. Breuss and F. Schebeck, Die Vollendung des EG-Binnenmarktes.
Gesamtwirtschaftliche Auswirkungen für Österreich. Vienna, 1989.
[2] F. Breuss and F. Schebeck, Der EG-Binnenmarkt und Österreich.
Nichtbeitritt, Beitritt und EWR. Vienna, 1990.
[3] W. J. McKibbin, R. Neck and G. Schäfer, Macroeconomic Implications
of the European Single Market for Austria: A Simulation Analysis.
Atlantic Economic Society, Best Papers Proceedings 3 (2), 1993, 25–32.
[4] W. J. McKibbin and J. D. Sachs, Global Linkages. Macroeconomic
Interdependence and Cooperation in the World Economy. Washington,
D.C., 1991.
[5] M. Emerson et al., The Economics of 1992. An Assessment of the
Potential Economic Effects of Completing the Internal Market of the
European Community, Commission of the European Communities,
European Economy, 1988.
[6] C. Keuschnigg and W. Kohler, Austria in the European Union: Dynamic
Gains from Integration and Distributional Implications. Economic Policy
22, 1996, 150–190.
[7] E. J. Dockner, Österreich und der EG-Binnenmarkt: eine
Simulationsstudie. In: R. Neck and F. Schneider, Österreich und der
EG-Binnenmarkt, Vienna 1993. [8] W.J. McKibbin, The New Europe and its Economic Implications for the
World Economy. Brookings Discussion Papers in International
Economics, No. 89, Washington, D.C., 1991.
[9] W.J. McKibbin, Short Run Implications of Long Run Shocks: Lessons
from the 1980s and the 1990s. Brookings Discussion Papers in
International Economics, No. 93, Washington, D.C., 1992.
[10] R. Baldwin, On the Measurement of Dynamic Effects of Integration.
Empirica 20, 1993, 129–145.
[1] F. Breuss and F. Schebeck, Die Vollendung des EG-Binnenmarktes.
Gesamtwirtschaftliche Auswirkungen für Österreich. Vienna, 1989.
[2] F. Breuss and F. Schebeck, Der EG-Binnenmarkt und Österreich.
Nichtbeitritt, Beitritt und EWR. Vienna, 1990.
[3] W. J. McKibbin, R. Neck and G. Schäfer, Macroeconomic Implications
of the European Single Market for Austria: A Simulation Analysis.
Atlantic Economic Society, Best Papers Proceedings 3 (2), 1993, 25–32.
[4] W. J. McKibbin and J. D. Sachs, Global Linkages. Macroeconomic
Interdependence and Cooperation in the World Economy. Washington,
D.C., 1991.
[5] M. Emerson et al., The Economics of 1992. An Assessment of the
Potential Economic Effects of Completing the Internal Market of the
European Community, Commission of the European Communities,
European Economy, 1988.
[6] C. Keuschnigg and W. Kohler, Austria in the European Union: Dynamic
Gains from Integration and Distributional Implications. Economic Policy
22, 1996, 150–190.
[7] E. J. Dockner, Österreich und der EG-Binnenmarkt: eine
Simulationsstudie. In: R. Neck and F. Schneider, Österreich und der
EG-Binnenmarkt, Vienna 1993. [8] W.J. McKibbin, The New Europe and its Economic Implications for the
World Economy. Brookings Discussion Papers in International
Economics, No. 89, Washington, D.C., 1991.
[9] W.J. McKibbin, Short Run Implications of Long Run Shocks: Lessons
from the 1980s and the 1990s. Brookings Discussion Papers in
International Economics, No. 93, Washington, D.C., 1992.
[10] R. Baldwin, On the Measurement of Dynamic Effects of Integration.
Empirica 20, 1993, 129–145.
@article{"International Journal of Business, Human and Social Sciences:70521", author = "Reinhard Neck and Guido Schäfer", title = "The Impact of the European Single Market on the Austrian Economy under Alternative Assumptions about Global and National Policy Reactions", abstract = "In this paper, we explore the macroeconomic effects
of the European Single Market on Austria by simulating the
McKibbin-Sachs Global Model. Global interdependences and the
impact of long-run effects on short-run adjustments are taken into
account. We study the sensitivity of the results with respect to
different assumptions concerning monetary and fiscal policies for the
countries and regions of the world economy. The consequences of
different assumptions about budgetary policies in Austria are also
investigated. The simulation results are contrasted with ex-post
evaluations of the actual impact of Austria’s membership in the
Single Market. As a result, it can be concluded that the Austrian
participation in the European Single Market entails considerable
long-run gains for the Austrian economy with nearly no adverse sideeffects
on any macroeconomic target variable.", keywords = "Macroeconomics, European Union, simulation,
sensitivity analysis.", volume = "9", number = "6", pages = "2041-10", }