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Regional Dimensions of the Australian Business Cycle

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  • Robert Dixon
  • David Shepherd

Abstract

Dixon R. and Shepherd D. Regional dimensions of the Australian business cycle, Regional Studies . This paper deals with the identification of, and explanations for, co-movement in regional business cycles using employment data for Australian states and territories (regions). It shows that both raw growth rates and the deviations from a Hodrick--Prescott trend reflect noise in the series as well as any cycle, but that both can be manipulated so as to reveal their cyclical components. It is found that growth rate models are dominated by noise, whereas the Hodrick--Prescott filter allows identification of the cyclical features of interest. The extent of co-movements in cyclical fluctuations in employment amongst the regions can be explained by regional industry structure and size of region.

Suggested Citation

  • Robert Dixon & David Shepherd, 2013. "Regional Dimensions of the Australian Business Cycle," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 264-281, February.
  • Handle: RePEc:taf:regstd:v:47:y:2013:i:2:p:264-281 DOI: 10.1080/00343404.2011.571242
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    References listed on IDEAS

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    Cited by:

    1. Celia Melguizo, 2015. "An analysis of Okun?s law for the Spanish provinces," ERSA conference papers ersa15p1558, European Regional Science Association.
    2. Celia Melguizo, 2017. "An analysis of Okun’s law for the Spanish provinces," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(1), pages 59-90, February.

    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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