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Testing for Asymmetry in the Measured and Underground Business Cycles in New Zealand

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  • DAVID E. A. GILES

Abstract

In this paper we consider the cyclical component of the underground economy in New Zealand, and compare some of its characteristics with those of the corresponding cycle in real measured GDP. Comparisons are made between the turning points of the two cycles, and formal tests for cyclical asymmetry (in terms of both ‘steepness' and ‘deepness’) are conducted. The turning‐point comparisons reinforce earlier results of Giles (1996a) on the causal linkages between the measured and underground economies. We find that there is no evidence of asymmetry in the cycles for either measured or underground output.

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  • David E. A. Giles, 1997. "Testing for Asymmetry in the Measured and Underground Business Cycles in New Zealand," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 225-232, September.
    • Handle: RePEc:bla:ecorec:v:73:y:1997:i:222:p:225-232
    DOI: 10.1111/j.1475-4932.1997.tb00995.x
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    7. Steven Cook & Alan Speight, 2006. "International Business Cycle Asymmetry and Time Irreversible Nonlinearities," Journal of Applied Statistics, Taylor & Francis Journals, vol. 33(10), pages 1051-1065.
    8. Steven Cook, 2000. "Seasonal adjustment and the univariate testing of asymmetry," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 649-652.
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    10. Steven Cook, 2000. "The alternative asymmetric behaviour of Australian consumers' expenditure," Applied Economics Letters, Taylor & Francis Journals, vol. 7(6), pages 349-352.
    11. Gemmell, Norman & Hasseldine, John, 2013. "Taxpayers' Behavioural Responses and Measures of Tax Compliance 'Gaps': A Critique," Working Paper Series 18786, Victoria University of Wellington, Chair in Public Finance.
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    13. Robert A Buckle & David Haugh & Peter Thomson, 2002. "Growth and volatility regime switching models for New Zealand GDP data," Treasury Working Paper Series 02/08, New Zealand Treasury.
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    18. Lindsay Tedds, 1998. "What goes up must come down (but not necessarily at the same rate): Testing for asymmetry in New Zealand time series," New Zealand Economic Papers, Taylor & Francis Journals, vol. 32(1), pages 41-55.
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