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Business cycles synchronization and clustering in Europe (1960-2009)

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  • Papageorgiou, Theofanis
  • Michaelides, Panayotis G.
  • Milios, John G.

Abstract

This paper deals with business cycle synchronization and clustering in Europe. It makes an attempt to answer some fundamental economic questions regarding European countries' business cycles in the 1960-2009 time span, by breaking the period down into three sub-periods based on major institutional changes (i.e. 1960-1991, 1992-1999, 2000-2009) and other relevant criteria. In this context, various techniques have been used, including pair-wise correlation and the so-called rolling window approach, spectral analysis and k-means clustering. Our results seem to suggest a core-periphery distinction in Europe. Also, the paper argues that European countries increased their synchronization in the time period 1992-1999, while the 2000-2009 time span is, in general, characterised by decreasing synchronization and an increase in the number of clusters. Our findings deserve careful screening and thus future research on the subject would be of great interest.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economics and Business.

Volume (Year): 62 (2010)
Issue (Month): 5 (September)
Pages: 419-470

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Handle: RePEc:eee:jebusi:v:62:y::i:5:p:419-470

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Web page: http://www.elsevier.com/locate/jeconbus

Related research

Keywords: Correlations Synchronization Clustering Rolling window Europe;

References

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Citations

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Cited by:
  1. Solomos, Dionysios & Papageorgiou, Theofanis & Koumparoulis, Dimitrios, 2012. "Financial Sector and Business Cycles Determinants in the EMU context: An Empirical Approach (1996-2011)," MPRA Paper 43858, University Library of Munich, Germany.
  2. Piljak, Vanja, 2013. "Bond markets co-movement dynamics and macroeconomic factors: Evidence from emerging and frontier markets," Emerging Markets Review, Elsevier, vol. 17(C), pages 29-43.
  3. Degiannakis, Stavros & Duffy, David & Filis, George, 2013. "Time-varying Business Cycles Synchronisation in Europe," MPRA Paper 52925, University Library of Munich, Germany.
  4. Maria Jesús Delgado-Rodriguez & Sonia De lucas-Santos, 2013. "Testing cyclical convergence with the factor model in the Euro Area," Economics Bulletin, AccessEcon, vol. 33(3), pages 2245-2250.
  5. Jose Ramon Cancelo, 2012. "Cyclical synchronization in the EMU along the financial crisis: An interpretation of the conflicting signals," European Journal of Government and Economics, Europa Grande, vol. 1(1), pages 86-100, June.
  6. Michaelides, Panayotis G. & Papageorgiou, Theofanis & Vouldis, Angelos T., 2013. "Business cycles and economic crisis in Greece (1960–2011): A long run equilibrium analysis in the Eurozone," Economic Modelling, Elsevier, vol. 31(C), pages 804-816.
  7. Dionysios K. Solomos & Dimitrios N. Koumparoulis, 2012. "Discretionary Fiscal Policy in the EMU Context: An Empirical Approach (1981-2010) & the Recent Reform in European Governance," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 117-136.

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