Stylized Facts of Greek Business Cycles: New Evidence from Aggregate and Across Regimes Data

35 Pages Posted: 1 Jun 2007

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Alexandros Panethimitakis

National and Kapodistrian University of Athens

Date Written: January 2007

Abstract

This study addresses stylized facts of the Greek economy over the period 1960-2003. The findings conveyed the procyclicality of consumption, while it is smoother than income. Investment and government expenses are more volatile than income. Prices are countercyclical, lending support to real business cycles. Real wages are procyclical, indicating that labor market developments are explained by shocks that shift the labor demand curve. By making allowances for changes in the regime, the empirical analysis provides supports to the same conclusions. The study also provides evidence about the identification of shocks related to the business cycle. The results showed that it is real shocks that drive the economy, implying that demand management policies do not work.

Keywords: Business cycles, stylized facts, real wages, variance decompositions, Greek economy

JEL Classification: E24, E32, C32

Suggested Citation

Apergis, Nicholas and Panethimitakis, Alexandros, Stylized Facts of Greek Business Cycles: New Evidence from Aggregate and Across Regimes Data (January 2007). Available at SSRN: https://ssrn.com/abstract=990245 or http://dx.doi.org/10.2139/ssrn.990245

Nicholas Apergis

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Alexandros Panethimitakis (Contact Author)

National and Kapodistrian University of Athens ( email )

5 Stadiou Strt
Athens, 12131
Greece

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