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Do european business cycles look like one?

Author

Listed:
  • Máximo Camacho

    (Universidad de Murcia)

  • Gabriel Pérez-Quirós

    (Economic Bureau of the President)

  • Lorena Saiz

    (Banco de España)

Abstract

This paper analyzes if each European country presents business cycles that are similar enough to validate what some authors call the European cycle. Contrary to the majority of papers on business cycles, we concentrate on the appearance of the cycle, not on the synchronization. We provide a robust methodology for dating and characterizing business cycles and their phases and adopt the model-based cluster analysis to test the existence of an unique cluster (a common cycle) against more than one. We find evidence against a common cycle. Finally, we find no clear relation between similarities in business cycle appearance and synchronization across countries.

Suggested Citation

  • Máximo Camacho & Gabriel Pérez-Quirós & Lorena Saiz, 2005. "Do european business cycles look like one?," Working Papers 0518, Banco de España.
    • Handle: RePEc:bde:wpaper:0518
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    business cycle characteristics; economic integration; european union enlargement; stationary bootstrap; model based cluster analysis;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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