{
  "title": "Common Factors in Latin America's Business Cycles",
  "publication": "IMF Working Papers, February 1, 2006",
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  "summary": "This paper constructs new business cycle indices for Argentina, Brazil, Chile, and Mexico based on common dynamic factors extracted from a comprehensive set of sectoral output, external data, and fiscal and financial variables spanning over a century.",
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    {
      "heading": "Methodology and Data",
      "content": "- Constructs new business cycle indices for Argentina, Brazil, Chile, and Mexico based on common dynamic factors.\n- Uses a comprehensive set of sectoral output, external data, and fiscal and financial variables spanning over a century.\n- The constructed indices are used to derive a business cycle chronology for the four countries."
    },
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      "heading": "Key findings and stylized facts",
      "content": "- All four countries have historically displayed a striking combination of high business cycle volatility and persistence relative to benchmark countries.\n- Such volatility has been time-varying, with important differences across policy regimes.\n- There exists a sizeable common factor across the four economies which has greatly limited scope for regional risk sharing."
    },
    {
      "heading": "Subjects and Analytical Focus",
      "content": "- Business cycles\n- Econometric analysis and Factor Models\n- Economic growth and Economic recession\n- Expenditure and government spending\n- International trade and Terms of trade\n- Time series analysis, density function, and volatility measures\n- Real GDP and backcasted business cycle analysis\n\n---\n\n Content in this bundle\n\n- 8. Volatility\n  - 8. Volatility (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 8. Volatility (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/common-factors-in-latin-america-s-business-cycles-18820"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/common-factors-in-latin-america-s-business-cycles-18820/index.md)",
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    "Authors: Allan Timmermann, Luis Catão, Marco Aiolfi",
    "Published: February 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451863093.001",
    "Constructs new business cycle indices for Argentina, Brazil, Chile, and Mexico based on common dynamic factors.",
    "Uses a comprehensive set of sectoral output, external data, and fiscal and financial variables spanning over a century.",
    "The constructed indices are used to derive a business cycle chronology for the four countries.",
    "All four countries have historically displayed a striking combination of high business cycle volatility and persistence relative to benchmark countries.",
    "Such volatility has been time-varying, with important differences across policy regimes.",
    "There exists a sizeable common factor across the four economies which has greatly limited scope for regional risk sharing.",
    "Business cycles",
    "Econometric analysis and Factor Models",
    "Economic growth and Economic recession",
    "Expenditure and government spending",
    "International trade and Terms of trade",
    "Time series analysis, density function, and volatility measures",
    "Real GDP and backcasted business cycle analysis",
    "**8. Volatility**"
  ],
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