Co-Movement Of Australian State Business Cycles
We use a variety of techniques to examine the nature and degree of co-movement among Australian state business cycles. Consistent with the results of Dixon and Shepherd (2001), we find that these cycles move quite closely together, with particularly strong links between the cycles of the larger states. We then seek to understand the causes of this co-movement by using an unobserved components model to distinguish between various shocks and their transmission. Our model implies that the major source of this co-movement in state activity is the commonality of shocks affecting state cycles. In contrast, spillovers of region-specific shocks appear to play only a minor role in creating co-movement, though region-specific shocks themselves have a moderate influence on cyclical fluctuations. These findings are consistent with the results of recent studies for the United States, Canada and Europe, where common shocks have also been found to dominate regional cyclical activity. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd/ University of Adelaide and Flinders University .
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 46 (2007)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0004-900X|