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Some New Results on Industrial Sector Mode-Locking and Business Cycle Formation

Author

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  • Süssmuth Bernd

    (Department of Business and Economics, Munich University of Technology, Germany)

  • Woitek Ulrich

    (Institute for Empirical Research in Economics, University of Zurich, Switzerland)

Abstract

Business cycles in different industries have a tendency to synchronize with one another in what appears to be a national business cycle. Using simulation and time series techniques in the time and frequency domain, we offer econometric support for the industrial sector mode-locking hypothesis, extending recent work by Selover, Jensen and Kroll (2003). In addition, we propose an economic motivation of the underlying nonlinear model.

Suggested Citation

  • Süssmuth Bernd & Woitek Ulrich, 2005. "Some New Results on Industrial Sector Mode-Locking and Business Cycle Formation," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 9(3), pages 1-35, September.
    • Handle: RePEc:bpj:sndecm:v:9:y:2005:i:3:n:1
    DOI: 10.2202/1558-3708.1185
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    References listed on IDEAS

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    Cited by:

    1. Larry Filer & David D. Selover, 2014. "Why Can Weak Linkages Cause International Stock Market Synchronization? The Mode-Locking Effect," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(3), pages 20-42, July.
    2. Mastromarco, Camilla & Woitek, Ulrich, 2007. "Regional business cycles in Italy," Computational Statistics & Data Analysis, Elsevier, vol. 52(2), pages 907-918, October.

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