IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v21y2011i20p1495-1513.html
   My bibliography  Save this article

The business cycle in Eurozone economies (1960 to 2009)

Author

Listed:
  • Ioanna Konstantakopoulou
  • Efthymios Tsionas

Abstract

This article investigates the business cycles of Eurozone economies. We detect static and dynamic relationships between cyclical components of output, arising through the use of different filtering methods. This is achieved using for the first, correlations, and for the second, the Autoregressive Distributed Lag (ARDL) model proposed by Pesaran et al. (Pesaran-Shin-Smith, PSS, 2001). The evidence indicates that there is a core group of countries, comprising Germany, France, Belgium, the Netherlands and Austria, which are the most synchronized. These countries appear to form a common European cycle after the institutional changes in Europe, while countries such as Greece, Portugal, Luxembourg and Finland present no synchronization with the rest. In addition, the long run estimated coefficients confirm the positive relationships between the business cycles of countries such as Germany with those of the Netherlands, Austria, Belgium, Greece and Ireland. Furthermore, the French cycle with the Dutch, Luxembourgian, Belgian and Spanish cycles; the Belgian cycle with the cycles of all examined countries; the Portuguese cycle with the Greek cycle and finally the Spanish cycle with the Irish cycle. The cycles of most countries converge in the long run equilibrium path, while the speed of convergence is higher in France, Netherlands, Germany and Austria.

Suggested Citation

  • Ioanna Konstantakopoulou & Efthymios Tsionas, 2011. "The business cycle in Eurozone economies (1960 to 2009)," Applied Financial Economics, Taylor & Francis Journals, vol. 21(20), pages 1495-1513.
  • Handle: RePEc:taf:apfiec:v:21:y:2011:i:20:p:1495-1513
    DOI: 10.1080/09603107.2011.579060
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09603107.2011.579060
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    as
    1. Canova, Fabio & Ciccarelli, Matteo & Ortega, Eva, 2012. "Do institutional changes affect business cycles? Evidence from Europe," Journal of Economic Dynamics and Control, Elsevier, vol. 36(10), pages 1520-1533.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atukeren, Erdal & Cevik, Emrah Ismail & Korkmaz, Turhan, 2015. "Downside Business Confidence Spillovers in Europe: Evidence from Causality-in-Risk Tests," MPRA Paper 76038, University Library of Munich, Germany.
    2. repec:eee:reveco:v:50:y:2017:i:c:p:75-84 is not listed on IDEAS
    3. Ansgar Belke & Clemens Domnick & Daniel Gros, 2017. "Business Cycle Synchronization in the EMU: Core vs. Periphery," Open Economies Review, Springer, vol. 28(5), pages 863-892, November.
    4. repec:eee:riibaf:v:42:y:2017:i:c:p:242-248 is not listed on IDEAS
    5. Anastasiou, Dimitrios, 2017. "The Interplay between Ex-post Credit Risk and the Cycles: Evidence from the Italian banks," MPRA Paper 79470, University Library of Munich, Germany.

    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:apfiec:v:21:y:2011:i:20:p:1495-1513. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.