01965cas a2200265 a 4500 AALejournalIMF013847 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484392485 1018-5941 BD-DhAAL BD-DhAAL Sun, Yan. The Driving Force behind the Boom and Bust in Construction in Europe / Yan Sun, Pritha Mitra, Alejandro Simone. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the factors behind pro-cyclical but widely varying construction shares (as a percent of GDP) across countries, with a strong focus on European countries. Using a dataset covering 48 countries (including advanced and emerging economies within and outside Europe) for 1990-2011, we find that country's geography, demographics, and economic conditions are the key determinants of a norm around which actual construction shares revolve in a simple AR(1) and error-correction process. The empirical results show that in many European countries, construction shares overshoot relative to their norms before the recent global crisis, but they have fallen significantly since the crisis. Nevertheless, there is still room for further adjustment in construction shares in some countries which may weigh on economic recovery. Mode of access: Internet Mitra, Pritha. Simone, Alejandro. IMF Working Papers; Working Paper ; No. 2013/181 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/181/001.2013.issue-181-en.xml IMF e-Library