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Non-linear Co-Movements in Output Growth: Evidence from the United States and Australia

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Author Info
Olan T. Henry
Nilss Olekalns
Kalvinder Shields

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Abstract

This paper investigates comovements between the United States and Australia. Our nonlinear model allows the dynamic response to shocks to differ if countries are in recession. Generalised Impulse Response Functions highlight a significant asymmetric response to positive and negative shocks.

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp02/857.pdf
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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 857.

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Length: 11 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:mlb:wpaper:857

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
Phone: +61 3 8344 5289
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Web page: http://www.economics.unimelb.edu.au
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Related research
Keywords: Current Depth of Recession Models Generalised Impulse Response Functions Asymmetries

Find related papers by JEL classification:
E0 - Macroeconomics and Monetary Economics - - General
N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations

References listed on IDEAS
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  1. Lee, Kevin C. & Pesaran, M. Hashem, 1993. "Persistence profiles and business cycle fluctuations in a disaggregated model of U.K. output growth," Ricerche Economiche, Elsevier, vol. 47(3), pages 293-322, September. [Downloadable!] (restricted)
  2. Pesaran, M. Hashem & Shin, Yongcheol, 1996. "Cointegration and speed of convergence to equilibrium," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 117-143. [Downloadable!] (restricted)
    Other versions:
  3. Gregory, Allan W & Head, Allen C & Raynauld, Jacques, 1997. "Measuring World Business Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 677-701, August.
    Other versions:
  4. Henry, Olan T & Summers, Peter M, 2000. "Australian Economic Growth: Nonlinearities and International Influences," The Economic Record, The Economic Society of Australia, vol. 76(235), pages 365-73, December.
    Other versions:
  5. Beaudry, Paul & Koop, Gary, 1993. "Do recessions permanently change output?," Journal of Monetary Economics, Elsevier, vol. 31(2), pages 149-163, April. [Downloadable!] (restricted)
  6. Henry, O.T. & Olekalns, N., 2000. "The Effect of Recessions on the Relationship between Output Variability and Growth," Department of Economics - Working Papers Series 745, The University of Melbourne. [Downloadable!]
  7. Steve Ambler & Emanuela Cardia & Christian Zimmermann, 1999. "International Business Cycles: What are the Facts?," Cahiers de recherche CREFE / CREFE Working Papers 90, CREFE, Université du Québec à Montréal. [Downloadable!]
    Other versions:
  8. Backus, David K & Kehoe, Patrick J & Kydland, Finn E, 1992. "International Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 745-75, August. [Downloadable!] (restricted)
    Other versions:
  9. Koop, Gary & Pesaran, M. Hashem & Potter, Simon M., 1996. "Impulse response analysis in nonlinear multivariate models," Journal of Econometrics, Elsevier, vol. 74(1), pages 119-147, September. [Downloadable!] (restricted)
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