Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212741
Authors: 
Siklos, Pierre L.
Year of Publication: 
2012
Series/Report no.: 
BOFIT Discussion Papers No. 17/2012
Abstract: 
Even before the events of the past few years, economists and policy makers were musing about the apparent contradiction between globalization, as it is generally understood, and the seemingly different paths in overall economic activity taken by the emerging and more mature economies of the world. The present paper reconsiders whether it is, in fact, useful to think of correlations in business cycle movements as reflecting some form of coupling or decoupling and, instead, suggests that, even if business cycles may well have become more synchronous for a time, it is more useful to think of international business cycle co-movements as reflecting their mutual dependence that can be subjected to short-run interruptions or affected by a variety of other economic factors. I report evidence based on factor-augmented quantile regressions for a panel of annual data since 1980 from 9 regions of the world. A panel is used to estimate the common factors which are then applied to the quantile regression model to determine the sources of business cycle co-movements across countries and regions of the world.
Subjects: 
business cycles
quantile regression
panel estimation
factor model
coupling
decoupling
JEL: 
E32
C21
C22
C23
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-748-1
Document Type: 
Working Paper

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