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Regional Dimensions of the Australian Business Cycle

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  • Robert Dixon
  • David Shepherd

Abstract

Dixon R. and Shepherd D. Regional dimensions of the Australian business cycle, Regional Studies . This paper deals with the identification of, and explanations for, co-movement in regional business cycles using employment data for Australian states and territories (regions). It shows that both raw growth rates and the deviations from a Hodrick--Prescott trend reflect noise in the series as well as any cycle, but that both can be manipulated so as to reveal their cyclical components. It is found that growth rate models are dominated by noise, whereas the Hodrick--Prescott filter allows identification of the cyclical features of interest. The extent of co-movements in cyclical fluctuations in employment amongst the regions can be explained by regional industry structure and size of region.

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  • Robert Dixon & David Shepherd, 2013. "Regional Dimensions of the Australian Business Cycle," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 264-281, February.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:2:p:264-281
    DOI: 10.1080/00343404.2011.571242
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    Cited by:

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    2. Celia Melguizo, 2017. "An analysis of Okun’s law for the Spanish provinces," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(1), pages 59-90, February.
    3. Liu, Dayu & Wang, Qiaoru & Song, Yang, 2020. "China’s business cycles at the provincial level: National synchronization, interregional coordination and provincial idiosyncrasy," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 629-650.
    4. Inga Ivanova & Oivind Strand & Loet Leydesdorff, 2019. "The Synergy and Cycle Values in Regional Innovation Systems: The Case of Norway," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(1), pages 48-61.
    5. Dalibor Stevanovic & Stéphane Surprenant & Rachidi Kotchoni, 2019. "Identification des points de retournement du cycle économique au Canada," CIRANO Project Reports 2019rp-05, CIRANO.

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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