Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28059
Authors: 
Heinemeyer, Hans Christian
Year of Publication: 
2007
Series/Report no.: 
Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin 2007/14
Abstract: 
This study dates business cycles in 10 European countries, the United States, and Japan between 1925 and 1936. The aim is to establish a consistent dating of the world economic crisis, which is a precondition for understanding the sharp economic decline in many countries during the interwar period. Three approaches were applied that are common in business cycle dating. First, a deskriptive analysis infers on recessions based on the two-consecutive quarters approach often associated with the US National Bureau of Economic Research. Second, the time series is decomposed into trend and cycle using the Hodrick-Prescott (1980) filter. The third approach is to use Markov-regime switching models, which was proposed by Hamilton (1989) for such purposes. The results of confirm that the Great Depression was a global phenomenon, not limited to the US or Germany. Business cycle comovement in the interwar period is at a level comparable to the post-WWII period. This finding points at the contribution of international business cycle integration to the course of the decline in single countries.
ISBN: 
3938369620
Document Type: 
Working Paper

Files in This Item:
File
Size
941.61 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.