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An Assessment of International Business Cycle Asymmetries using Clements and Krolzig's Parametric Approach

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  • Belaire-Franch Jorge

    (University of Valencia, Spain)

  • Contreras Dulce

    (University of Valencia, Spain)

Abstract

In a recent paper, Razzak (2001) finds some evidence of two types of asymmetry,steepness and deepness, in international business cycle data, using the nonparametric test of Randles et al. (1980). In this paper, we test for three types of asymmetry: steepness, deepness and sharpness, using the new parametric tests of Clements and Krolzig (2003), in the real GDP of six countries, corresponding to four major economies (U.S., U.K., Japan and Germany) and two small open economies increasingly cited in the literature, Australia and New Zealand. Comparing the Triples test results, corrected for autocorrelation, to Clements and Krolzig's methodology, parametric tests provide stronger evidence of international business cycle asymmetries.

Suggested Citation

  • Belaire-Franch Jorge & Contreras Dulce, 2003. "An Assessment of International Business Cycle Asymmetries using Clements and Krolzig's Parametric Approach," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 6(4), pages 1-11, March.
    • Handle: RePEc:bpj:sndecm:v:6:y:2003:i:4:n:re1
    DOI: 10.2202/1558-3708.1089
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    References listed on IDEAS

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    1. Beaudry, Paul & Koop, Gary, 1993. "Do recessions permanently change output?," Journal of Monetary Economics, Elsevier, vol. 31(2), pages 149-163, April.
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    Cited by:

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    2. Eric Kemp-Benedict, 2017. "A multi-sector Kaleckian-Harrodian model for long-run analysis," Working Papers PKWP1702, Post Keynesian Economics Society (PKES).
    3. Veli Yilanci, 2012. "Investigating Asymmetries in Macroeconomic Aggregates of Central and Eastern European Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 223-229, February.
    4. Li, Shuyun May & Dressler, Scott, 2011. "Business cycle asymmetry via occasionally binding international borrowing constraints," Journal of Macroeconomics, Elsevier, vol. 33(1), pages 33-41, March.
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    6. Almeida, Pedro Cameira de & Fuinhas, José Alberto & Marques, António Cardoso, 2011. "A assimetria dos ciclos económicos: Evidência internacional usando o teste triples [The asymmetry of business cycles: International evidence using triples test]," MPRA Paper 35208, University Library of Munich, Germany.

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