Convergence analysis of net saving

Abstract

In order to analyses the variation in the wealth of economic agents from each source, the following study assesses monetary unification, as well as European economic policies with regard to the net savings variable. Therefore, the study treats the twelve countries of the Eurozone and subjects them to a convergence analysis. The method used to treat convergence is Phillips and Sul (2009). This way two clubs can be appreciated which tend towards a common stationary state. The first club is made up of France, Belgium, Austria, Spain, Luxembourg and Ireland. The second group consists of Portugal, Italy, Greece and Finland. In addition, there is a third classification constituted by countries that do not converge with any other club or between them, these are Germany and Netherlands. Once obtained the results are attributed as underlying reasons of the classification the geography and similar particularities as far as the industry is concerned