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Regional Dimensions of the Australian Business Cycle

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  • Robert Dixon
  • David Shepherd

Abstract

This paper deals with the identification of, and explanations for, co-movement in regional business cycles using data for Australian states and territories (regions). We show 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 it is possible to manipulate the deviations from a Hodrick-Prescott trend in a simple way so as to reveal its cyclical component. We measure the extent of co-movements in employment fluctuations amongst the regions. We find that cross-region correlations in employment cycles can be explained by regional industry structure and size while the noise component of regional fluctuations appears instead to be related to physical geography.

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File URL: http://fbe.unimelb.edu.au/__data/assets/pdf_file/0007/801178/1088.pdf
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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1088.

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Length: 32 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:mlb:wpaper:1088

Contact details of provider:
Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
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Web page: http://www.economics.unimelb.edu.au
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Keywords: Regional Employment; Business Cycles; Autoregressive Modelling; Co-Movement;

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References

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