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The Properties Of Cycles In South African Financial Variables And Their Relation To The Business Cycle

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WH BOSHOFF

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Abstract

The paper describes cyclicality in a range of local and international financial variables and their relation to cyclical behaviour in the South African real economy. Cycles are derived using a dating algorithm similar to that used to determine business cycle turning points and falls within the Burns-Mitchell tradition of business cycle analysis. Co-movement between phases in financial variables and similar phases in the business cycle are described using the concordance statistic, instead of the correlation statistic (which requires stationarity). This is a preliminary step in identifying financial variables that can act as leading indicators of economic activity. Copyright 2005 Economic Society of South Africa.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2005.00047.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 73 (2005)
Issue (Month): 4 (December)
Pages: 694-709
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Handle: RePEc:bla:sajeco:v:73:y:2005:i:4:p:694-709

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This page was last updated on 2009-11-22.


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