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

  • 24

complete list of authors

  • BRADLEY, MICHAEL D||JANSEN, DENNIS W

publication date

  • July 1997

publisher