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Have economic fluctuations been dampened? New empirical evidence from Italy

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  • Giuseppe Schlitzer

Abstract

Using new series of aggregate and disaggregate output, this paper examines the historical pattern of volatility of economic fluctuations in Italy. Results evidence a higher stability in the postwar era, with respect to both the prewar and the interwar periods. Evidence is provided that the higher degree of stabilization of the Italian business cycle cannot be entirely attributed to the shift in the composition of aggregate output from more to less cyclical sectors. It is shown, however, that although the sign of the change in volatility is invariant to the filter adopted for the decomposition into trend and cycle, this is not true for both its size and statistical significance. Copyright Kluwer Academic Publishers 1995

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  • Giuseppe Schlitzer, 1995. "Have economic fluctuations been dampened? New empirical evidence from Italy," Open Economies Review, Springer, vol. 6(4), pages 387-397, October.
    • Handle: RePEc:kap:openec:v:6:y:1995:i:4:p:387-397
    DOI: 10.1007/BF01000389
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    References listed on IDEAS

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    1. Prescott, Edward C., 1986. "Theory ahead of business-cycle measurement," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 11-44, January.
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    Cited by:

    1. Gatti, Domenico Delli & Gallegati, Marco & Gallegati, Mauro, 2005. "On the nature and causes of business fluctuations in Italy, 1861-2000," Explorations in Economic History, Elsevier, vol. 42(1), pages 81-100, January.

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    Keywords

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