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Similarities and convergence in G-7 cycles

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  • Fabio Canova

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  • Matteo Ciccarelli
  • Eva Ortega

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 differences 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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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 924.

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Date of creation: Feb 2003
Date of revision: Aug 2004
Handle: RePEc:upf:upfgen:924

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Web page: http://www.econ.upf.edu/

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Keywords: Business cycle; G7; indicators; Panel Data; Bayesian methods;

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