IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v27y2020i21p1711-1717.html
   My bibliography  Save this article

Business cycle asymmetry: evidence from Japan’s decade-long deflation

Author

Listed:
  • Satoshi Urasawa

Abstract

This paper empirically examines the asymmetric behaviour of macroeconomic time series under different economic regimes, focusing especially on whether the economy is in a deflationary or non-deflationary regime, using a threshold vector autoregression model (TVAR). The results provide evidence in favour of asymmetric spillover effects from demand shocks on economic variables such as wages and consumption. In contrast to the non-deflationary period, during the deflationary period demand shocks are not clearly transmitted to the economy overall due mainly to the rigidity of nominal wages. The findings highlight that the state of the economy also matters when we consider the nature of the business cycle.

Suggested Citation

  • Satoshi Urasawa, 2020. "Business cycle asymmetry: evidence from Japan’s decade-long deflation," Applied Economics Letters, Taylor & Francis Journals, vol. 27(21), pages 1711-1717, December.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:21:p:1711-1717
    DOI: 10.1080/13504851.2020.1715335
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2020.1715335
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2020.1715335?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:27:y:2020:i:21:p:1711-1717. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.