Advanced Search
MyIDEAS: Login

Co-Movement Of Australian State Business Cycles

Contents:

Author Info

  • DAVID NORMAN
  • THOMAS WALKER
Registered author(s):

    Abstract

    We use a variety of techniques to examine the nature and degree of co-movement among Australian state business cycles. Consistent with the results of Dixon and Shepherd (2001), we find that these cycles move quite closely together, with particularly strong links between the cycles of the larger states. We then seek to understand the causes of this co-movement by using an unobserved components model to distinguish between various shocks and their transmission. Our model implies that the major source of this co-movement in state activity is the commonality of shocks affecting state cycles. In contrast, spillovers of region-specific shocks appear to play only a minor role in creating co-movement, though region-specific shocks themselves have a moderate influence on cyclical fluctuations. These findings are consistent with the results of recent studies for the United States, Canada and Europe, where common shocks have also been found to dominate regional cyclical activity. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd/ University of Adelaide and Flinders University .

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-8454.2007.00325.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Australian Economic Papers.

    Volume (Year): 46 (2007)
    Issue (Month): 4 (December)
    Pages: 360-374

    as in new window
    Handle: RePEc:bla:ausecp:v:46:y:2007:i:4:p:360-374

    Contact details of provider:
    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

    Order Information:
    Web: http://www.blackwellpublishing.com/subs.asp?ref=0004-900X

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Robert Dixon & David Shepherd, 2013. "Regional Dimensions of the Australian Business Cycle," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 264-281, February.
    2. Hall, Viv B & McDermott, C John, 2011. "An unobserved components common cycle for Australasia? Implications for a common currency," Working Paper Series 1548, Victoria University of Wellington, School of Economics and Finance.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:46:y:2007:i:4:p:360-374. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.