Nonlinear business cycle dynamics: Cross-country evidence on the persistence of aggregate shocks Academic Article uri icon

abstract

  • We look for asymmetries in the dynamics of real GDP growth for the G7 countries, using a model by Beaudry and Koop that allows the depth of a recession to influence the rate of growth of output. We find evidence supporting these non-linearities in four countries, including the United States, but we do not find evidence that the asymmetries are common even among the four countries exhibiting asymmetric behavior. A modification of the model to distinguish between the recession and recovery phases of a business cycle does not change this general finding. The asymmetries discovered by Beaudry and Koop do not appear to be common among the G7 nations. (JEL E32).

published proceedings

  • ECONOMIC INQUIRY

author list (cited authors)

  • Bradley, M. D., & Jansen, D. W.

citation count

  • 26

complete list of authors

  • Bradley, MD||Jansen, DW

publication date

  • January 1997

publisher