Business Cycles Around the Globe: A Regime-Switching Approach

56 Pages Posted: 24 Aug 2010

See all articles by Sumru Altug

Sumru Altug

American University of Beirut - Faculty of Arts & Sciences; Koc University - Department of Economics

Melike Bildirici

Yildiz Technical University

Date Written: August 2010

Abstract

This paper characterizes business cycle phenomena in a sample of 27 developed and developing economies using a univariate Markov regime switching approach. It examines the efficacy of this approach for detecting business cycle turning points and for identifying distinct economic regimes for each country in question. The paper also provides a comparison of the business cycle turning points implied by this study and those derived in other studies. Our findings document the importance of heterogeneity of individual countries' experiences. We also argue that consideration of a large and diverse group of countries provides an alternative perspective on the co-movement of aggregate economic activity worldwide.

Keywords: business cycles, Markov switching approach, nonparametric modeling, turning point analysis

JEL Classification: C32, E32, E37

Suggested Citation

Altug, Sumru and Bildirici, Melike, Business Cycles Around the Globe: A Regime-Switching Approach (August 2010). CEPR Discussion Paper No. DP7968, Available at SSRN: https://ssrn.com/abstract=1661571

Sumru Altug (Contact Author)

American University of Beirut - Faculty of Arts & Sciences ( email )

P.O.Box 11-0236 / (Department)
Beirut
Lebanon

Koc University - Department of Economics ( email )

Rumeli Feneri Yolu
Sariyer 34450, Istanbul
Turkey
(90 212) 338 1673 (Phone)
(90 212) 338 1651 (Fax)

Melike Bildirici

Yildiz Technical University ( email )

Davutpasa Mh., Esenler
Besiktas, Istanbul 80750
Turkey

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