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Similarities and convergence in G-7 cycles

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  • Fabio Canova

    ()
    (Universitat Pompeu Fabra)

  • Matteo Ciccarelli

    ()
    (European Central Bank)

  • Eva Ortega

    ()
    (Banco de España)

Abstract

This paper examines the properties of G-7 cycles using a multicountry Bayesian panel VAR model with time variations, unit specific dynamics and cross country interdependences. We demonstrate the presence of a significant world cycle and show that country specific indicators play a much smaller role. We detect di erences across business cycle phases but, apart from an increase in synchronicity in the late 1990s, find little evidence of major structural changes. We also find no evidence of the existence of an Euro area specific cycle or of its emergence in the 1990s.

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File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/04/Fic/dt0404e.pdf
File Function: First version, February 2004
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Bibliographic Info

Paper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0404.

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Length: 32 pages
Date of creation: Feb 2004
Date of revision:
Handle: RePEc:bde:wpaper:0404

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