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Is Decoupling in Action?

In: Economic Cycles in Emerging and Advanced Countries

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  • Antonio Pesce

Abstract

As explained in Chap. 2 , the decoupling hypothesis essentially refers to changes in the degree of business cycle interdependence between the two groups of economies (EEs and AEs). It implies two main consequences that should be empirically observable: (1) a decreasing comovement of economic cycles between AEs and EEs over time, (2) an increasing resilience of the EEs to adverse scenarios in AEs. These two points were studied in this chapter by using two different tools: the Euclidean Distance Indicator and the Time-Varying Panel VAR Econometric Model.

Suggested Citation

  • Antonio Pesce, 2015. "Is Decoupling in Action?," Contributions to Economics, in: Economic Cycles in Emerging and Advanced Countries, edition 127, chapter 0, pages 51-111, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-17085-5_3
    DOI: 10.1007/978-3-319-17085-5_3
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