International Business Cycles: What Are the Facts?

Steven Ambler (), Emanuela Cardia () and Christian Zimmermann

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: Modern business cycle theory involves developing models that explain stylized facts. For this strategy to be successful, these facts should be well established. In this paper, we focus on the stylized facts of international business cycles. We use the generalized method of moments and quarterly data from nineteen industrialized countries to estimate pairwise cross-country and within-country correlations of macroeconomic aggregates. We calculate standard errors of the statistics for our unique panel of data and test hypotheses about the relative sizes of these correlations. We find a lower cross-country correlation of all aggregates and especially of consumption than in previous studies. The cross-country correlations of consumption, output and Solow residuals are not significantly different from one another over the whole sample, but there are significant differences in the post-1973 subsample.

Keywords: international business cycles; stylized facts; generalized method of moments (search for similar items in EconPapers)
JEL-codes: E30 E32 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2000
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Citations: View citations in EconPapers (50)

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http://hdl.handle.net/1866/330 (application/pdf)

Related works:
Journal Article: International business cycles: What are the facts? (2004)
Working Paper: International Business Cycles: What Are the Facts? (2000)
Working Paper: International Business Cycles: What are the Facts? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:mtl:montde:2000-05

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