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On business cycles synchronization in Europe: A note on network analysis

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  • Matesanz, David
  • Ortega, Guillermo J.

Abstract

In this paper we examine synchronization in European business cycles from 1950 to 2013. Herein we further investigate previous and controversial results that arise from complex network analysis of this topic. By focusing on the importance of different configurations in the commonly used rolling windows and threshold significance levels, we find that selections are critical to obtaining accurate networks. Output co-movement and connectivity show no appreciable changes during the beginning of the Euro period, but rather dramatic jumps are observed since the outbreak of the global financial crisis. At this time, previous lead/lag effects disappeared and in-phase synchronization across Europe was observed.

Suggested Citation

  • Matesanz, David & Ortega, Guillermo J., 2016. "On business cycles synchronization in Europe: A note on network analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 287-296.
    • Handle: RePEc:eee:phsmap:v:462:y:2016:i:c:p:287-296
    DOI: 10.1016/j.physa.2016.06.097
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    4. Dias, João, 2017. "Unemployment and sovereign debt crisis in the Eurozone: A k-means-r analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 482(C), pages 108-117.
    5. Kang, Sang Hoon & Lahmiri, Salim & Uddin, Gazi Salah & Arreola Hernandez, Jose & Yoon, Seong-Min, 2020. "Inflation cycle synchronization in ASEAN countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 545(C).
    6. Tamás Sebestyén & Zita Iloskics, 2020. "Do economic shocks spread randomly?: A topological study of the global contagion network," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-22, September.

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