Data for the three variables are the average value for the period 1985-1992. The analysis of
this period for the Spanish economy is specially relevant as it includes both an expansive
phase of the business cycle and a contractive one and also different monetary policy measures
(see annex 3). Averaging the data for explanatory variables is also appropriate, as we are
interested in analysing the average behaviour during the sample period. Averaging also
minimises the possibility that the results are affected by business-cycle dynamics (although
the average period is relatively short due to data availability). The data source for the relative
weights of manufacturing and building is Eurostat-Regio and data for the average firm size
come from DAISIE Annual industrial survey (New cronos). Both data are shown in annex 1.
The obtained values of the indicator of the regional relative response to a common monetary
shock for the Spanish regions are also shown in annex 1 and are represented in figure 3. As it
can be seen regions with the highest response are the Mediterranean regions joint with
Castilla-La Mancha, Rioja and Navarra, while regions with the lowest response are Madrid,
Murcia and Cantabric regions. In general terms, the obtained classification is similar to the
one obtained by De Lucio and Izquierdo (1998). The proposed indicator has also been
calculated for different countries at a national level and the obtained results have been
compared with the ones by Carlino and DeFina (1998). As it can be seen in annex 2, both
results show that Ireland and Spain have greater responses to a common monetary shocks that
France, Italy and Netherlands.
Figure 3. Regional indicator of monetary policy relative responses
13
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