What Are the Driving Forces of International Business Cycles?

Mario Crucini (), Ayhan Kose and Christopher Otrok

No 14380, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the driving forces of G-7 business cycles. We decompose national business cycles into common and nation-specific components using a dynamic factor model. We also do this for driving variables found in business cycle models: productivity; measures of fiscal and monetary policy; the terms of trade and oil prices. We find a large common factor in oil prices, productivity, and the terms of trade. Productivity is the main driving force, with other drivers isolated to particular nations or sub-periods. Along these lines, we document shifts in the correlation of the G-7 component of each driver with the overall G-7 cycle.

JEL-codes: E3 E32 F4 F41 (search for similar items in EconPapers)
Date: 2008-10
New Economics Papers: this item is included in nep-bec, nep-cba, nep-mac and nep-opm
Note: IFM
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Citations: View citations in EconPapers (25)

Published as Mario Crucini & Ayhan Kose & Christopher Otrok. "What are the driving forces of international business cycles?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics. Volume 14, Issue 1. (January 2011)

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Related works:
Journal Article: What are the driving forces of international business cycles? (2011)
Working Paper: What are the driving forces of international business cycles (2009)
Working Paper: What Are the Driving Forces of International Business Cycles? (2008)
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