The Identification of the Causes of Business Cycles Across Countries

Author/Editor:

Don E. Schlagenhauf ; Stefan C. Norrbin

Publication Date:

January 1, 1990

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Empirical research has been conducted on the various theories of the business cycle over many countries. However, very little research has attempted to undertake a multi-country disaggregate investigation into the sources of output change. This paper decomposes fluctuations in industry output in a particular country into: (1) a nation specific shock; (2) an industry specific shock; (3) a world shock; and (4) an idiosyncratic factor. Using a dynamic factor analysis-state-space approach, the paper finds that the nation-specific shock is the most important impulse.

Series:

Working Paper No. 90/4

Subject:

English

Publication Date:

January 1, 1990

ISBN/ISSN:

9781451930085/1018-5941

Stock No:

WPIEA0041990

Format:

Paper

Pages:

26

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