The Identification of the Causes of Business Cycles Across Countries
Summary:
Empirical research has been conducted on the various theories of the business cycle over many countries. However, very little research has attempted to undertake a multi-country disaggregate investigation into the sources of output change. This paper decomposes fluctuations in industry output in a particular country into: (1) a nation specific shock; (2) an industry specific shock; (3) a world shock; and (4) an idiosyncratic factor. Using a dynamic factor analysis-state-space approach, the paper finds that the nation-specific shock is the most important impulse.
Series:
Working Paper No. 1990/004
Subject:
Business cycles Economic growth Exchange rate arrangements Foreign exchange Industrial production Monetary base Money Oil prices Prices Production
English
Publication Date:
January 1, 1990
ISBN/ISSN:
9781451930085/1018-5941
Stock No:
WPIEA0041990
Pages:
26
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