Testing for Asymmetry in the Measured and Underground Business Cycles in New Zealand
In this paper, the author considers the cyclical component of the underground economy in New Zealand and compares some of its characteristics with those of the corresponding cycle in real measured GDP. Comparisons are made between the turning points of the two cycles and formal tests for cyclical asymmetry (in terms of both 'steepness' and 'deepness') are conducted. The turning-point comparisons reinforce earlier results of D. E. A. Giles (1996) on the causal linkages between the measured and underground economies. The author finds that there is no evidence of asymmetry in the cycles for either measured or underground output. Copyright 1997 by The Economic Society of Australia.
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Volume (Year): 73 (1997)
Issue (Month): 222 (September)
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