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Some International Evidence on Double-Dip Recession

Author

Listed:
  • Ben L. Kyer

    (Francis Marion University)

  • Gary E. Maggs

    (St. John Fisher College)

Abstract

With quarterly data on real gross domestic product for 21 nations from the Organization for Economic Co-operation and Development, this paper investigates the relatively neglected concept of double-dip recession. For this paper, a double-dip recession is defined as a second decline of real gross domestic product (GDP) after a trough of the economic cycle but prior to the reversion point or the previous peak level of real GDP. We find that while traditional or single-dip recessions constitute the majority of the recessions found for this paper, double-dip recessions are rather common occurrences across the world. However, higher-order multi-dip recessions, with three or more declines of real GDP before the reversion point is attained, are considerably less prevalent. We also find evidence of what we term trough-deepening multi-dip recessions.

Suggested Citation

  • Ben L. Kyer & Gary E. Maggs, 2019. "Some International Evidence on Double-Dip Recession," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(3), pages 347-362, August.
    • Handle: RePEc:kap:iaecre:v:25:y:2019:i:3:d:10.1007_s11294-019-09747-2
    DOI: 10.1007/s11294-019-09747-2
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    References listed on IDEAS

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    Keywords

    Double-dip recession; Reversion point;

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