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Business cycles in Chile (2000–2023): analysing GDP and the components of aggregate demand

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  • Tutiven-Desintonio, Cindy Gianella

Abstract

This study presents a characterisation of GDP cycles and the components of aggregate demand in Chile in terms of their duration and amplitude. These cycles are analysed from both classical and growth perspectives. Turning points in the series are identified using the BBQ algorithm. Using quarterly data from January 2000 to December 2023, the empirical analysis identifies three complete classical cycles, four recessions, and two crises. During this period, government expenditure plays a prominent role in explaining the expansionary dynamics of the GDP cycle.

Suggested Citation

  • Tutiven-Desintonio, Cindy Gianella, 2025. "Business cycles in Chile (2000–2023): analysing GDP and the components of aggregate demand," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009894
    DOI: 10.1016/j.frl.2025.107731
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    Keywords

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

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