EconPapers    
Economics at your fingertips  
 

BUSINESS CYCLE TRENDS, CYCLES AND GROWTH REVISITED: WITH APPLICATIONS TO G7 ECONOMIES*

Peijie Wang and Ping Wang

Australian Economic Papers, 2007, vol. 46, issue 3, 282-299

Abstract: This paper examines the behaviour of G7 economies and decomposes their GDP into trend and cycle components using the Kalman filter. The general model of the paper encompasses a number of alternative specifications about trend growth, therefore accommodating diverse views on growth. The business cycle characteristics of G7 economies are then discussed, compared and deliberated in this framework. The empirical results overwhelmingly favor a mean‐reverting stochastic process for the growth rate, the general and unrestricted specification of the paper, across G7 countries, though the restrictions are statistically rejected in less than half of the cases. Further reflection on the properties of cycles makes the specifications and the results of this study more reasonable in capturing the characteristics of GDP series, and contributes to solving the controversies in model specifications in some previous studies.

Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1467-8454.2007.00319.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:46:y:2007:i:3:p:282-299

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-11-26
Handle: RePEc:bla:ausecp:v:46:y:2007:i:3:p:282-299