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

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).

authors

• Jansen, Dennis

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

• Wiley  Publisher

published in

• ECONOMIC INQUIRY  Journal

keywords

• 8 Decent Work And Economic Growth

Digital Object Identifier (DOI)

• 10.1111/j.1465-7295.1997.tb02027.x

start page

• 495

end page

• 509

volume

• 35

issue

• 3

URL

• http://dx.doi.org/10.1111/j.1465-7295.1997.tb02027.x

user-defined tag

• 8 Decent Work and Economic Growth