{"id":8797,"date":"2022-07-27T06:34:00","date_gmt":"2022-07-27T06:34:00","guid":{"rendered":"https:\/\/depocen.org\/publications\/east-asian-currency-area-a-bayesian-dynamic-factormodel-analysis\/"},"modified":"2022-07-27T06:34:00","modified_gmt":"2022-07-27T06:34:00","slug":"east-asian-currency-area-a-bayesian-dynamic-factormodel-analysis","status":"publish","type":"publications","link":"https:\/\/depocen.org\/en\/publications\/east-asian-currency-area-a-bayesian-dynamic-factormodel-analysis\/","title":{"rendered":"East Asian Currency Area: A Bayesian Dynamic Factor\r\nModel Analysis."},"content":{"rendered":"<p>There has been recently increasing interest in the establishment of a common currency area<br \/>\nin East Asia in the aftermath of the East Asian financial crisis. In this paper, we examine the<br \/>\ndesirability and feasibility of forming a currency area in the region by checking the symmetry of<br \/>\nshocks as an important criterion of the Theory of Optimum Currency Area. We employ a Dynamic<br \/>\nFactor Model to decompose aggregate output into global, regional and country-specific<br \/>\ncomponents and estimate the model using Gibbs sampling simulation. Persistent properties of<br \/>\nthose components are examined and variance decomposition analysis is performed to investigate<br \/>\nthe role of each component in output variance. Based on variance analysis, we find that East Asia<br \/>\ncountries, on average, are less plausible candidates for a currency area than European counterparts.<br \/>\nHowever, a subgroup of countries in East Asia are as qualified as those in Europe. Given the<br \/>\nongoing integration in East Asia, it is not premature to prepare for such a currency area in this<br \/>\nregion.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[1576,1577],"topic_publications":[],"class_list":["post-8797","publications","type-publications","status-publish","hentry","author_publications-toan-nguyen","author_publications-toan-nguyen-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications\/8797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/media?parent=8797"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/cate_publications?post=8797"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/author_publications?post=8797"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/topic_publications?post=8797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}