Business Cycle Convergence: A Survey of Methods and Models

25 Pages Posted: 6 Dec 2015

See all articles by Theophilos Papadimitriou

Theophilos Papadimitriou

Department of Economics, Democritus University of Thrace

Periklis Gogas

Democritus University of Thrace - Department of Economics

Georgios Sarantitis

Democritus University of Thrace - Department of Economics

Date Written: December 4, 2013

Abstract

This survey provides an up-to-date summary of the literature that relates to the study of business cycle synchronization. Various paths have been followed through time in empirically testing business cycle co-movement and different data sets have been explored so that to date consensus still dissolves. These studies fall into two major categories: those dealing with the existence of business cycle convergence and the ones trying to identify the macroeconomic variables that induce the co-movement patterns. With respect to the first category and despite the varying empirical results, the majority of studies present evidence in favor of macroeconomic convergence in certain country groups e.g. the members of the EMU and the US states. Regarding the second category of studies, most authors provide evidence that designates the intensity of trade as a robust factor that induces convergence. We classify the literature into groups depending on the methodology followed in order to provide to the reader a consistent and comprehensive guide.

Keywords: Business Cycle, Convergence, Synchronization

Suggested Citation

Papadimitriou, Theophilos and Gogas, Periklis and Sarantitis, Georgios, Business Cycle Convergence: A Survey of Methods and Models (December 4, 2013). Available at SSRN: https://ssrn.com/abstract=2699224 or http://dx.doi.org/10.2139/ssrn.2699224

Theophilos Papadimitriou

Department of Economics, Democritus University of Thrace ( email )

University Campus
Komotini, 69100
Greece

HOME PAGE: http://econ.duth.gr/author/papadimi/

Periklis Gogas

Democritus University of Thrace - Department of Economics ( email )

Komotini, 69100
Greece

HOME PAGE: http://www.econ.duth.gr/personel/dep/gkogkas/index.en.shtml

Georgios Sarantitis (Contact Author)

Democritus University of Thrace - Department of Economics ( email )

Komotini
Greece

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