Did the Maastricht Treaty Matter for Macroeconomic Performance? A Difference-in-Difference Investigation

28 Pages Posted: 9 Jul 2009

Abstract

We explore the impact of the Maastricht treaty on fiscal and macroeconomic outcomes in the EU with the difference-in-difference methodology. Our dataset covers 23 OECD countries over the 1975–2006 period. EU 15 countries are classified as the treatment and eight non-EU OECD countries as the control group. The results indicate that the provisions in the Maastricht treaty have been either irrelevant or even harmful for fiscal and macroeconomic developments in the EU. Evidence for a detrimental impact of the Maastricht criteria is particularly strong for the period after the start of the third stage of EMU.

Suggested Citation

Baskaran, Thushyanthan, Did the Maastricht Treaty Matter for Macroeconomic Performance? A Difference-in-Difference Investigation. Kyklos, Vol. 62, Issue 3, pp. 331-358, August 2009, Available at SSRN: https://ssrn.com/abstract=1432258 or http://dx.doi.org/10.1111/j.1467-6435.2009.00439.x

Thushyanthan Baskaran (Contact Author)

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
571
PlumX Metrics