Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314181 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Applied Economics [ISSN:] 1667-6726 [Volume:] 25 [Issue:] 1 [Year:] 2022 [Pages:] 691-722
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This paper investigates the evolution of business cycles synchronization in Latin America since the 1990§s. To do so, a Vector Autoregressive model is fed, alternatively, with the countries' Industrial Production Indexes and with these series filtered by the US financial conditions index, which is considered a common component affecting business cycles in the region. Additionally, a Markov switching model is estimated to identify regional recessions. Our findings indicate that business cycles connectedness rise significantly during regional recessions and that the common factor plays an important role. The evidence supports the usefulness of policy coordination among Latin American economies to cushion the spillover effects of exogenous shocks, and helps to identify subgroups of countries for which such coordination is recommendable.
Subjects: 
Connectedness indexes
Latin American business cycles
Markov switching models
policy coordination
vector autoregressive analysis
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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