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Business Cycles around the Globe: A Regime Switching Approach

  • Sumru Altuğ

    (Koç University, CEPR)

  • Melike Bildirici

    ()

    (Department of Economics, Yildiz Technical University)

This paper characterizes business cycle phenomena in a sample of 22 developed and developing economies using a univariate Markov regime switching approach. It examines the efficacy of this approach for detecting business cycle turning points and for identifying distinct economic regimes for each country in question. The paper also provides a comparison of the business cycle turning points implied by this study and those derived in other studies and by other methods. Our findings document the importance of heterogeneity of individual countries’ experiences. We also argue that consideration of a large and diverse group of countries provides an alternative perspective on the co-movement of aggregate economic activity worldwide.

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File URL: http://www.ikt.yildiz.edu.tr/RePEc/yil/makaleler/altug0032.pdf
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Paper provided by Yildiz Technical University, Department of Economics in its series Working Papers with number 0032.

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Length: 65 pages
Date of creation: Mar 2010
Date of revision: Mar 2010
Handle: RePEc:yil:wpaper:0032
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