IDEAS home Printed from https://ideas.repec.org/p/kud/kuiedp/9823.html
   My bibliography  Save this paper

International Evidence on the Connection between Business Cycles and Economic Growth

Author

Listed:
  • Torben Mark Pedersen

    (Institute of Economics, University of Copenhagen)

  • Anne Marie Elmer

    (Ministry of Economic Affairs, Copenhagen)

Abstract

We study the hypothesis that there is a connection between business cycles and economic growth. If economic growth and business cycles were completely independent of each other, then changes in the growth rate would be unrelated to dates of business cycle turning points (apart from pure coincidence). This is a testable implication, and we ''test'' for a connection between business cycles and economic growth by comparing the dates of business cycle turning points with the dates of estimated trend breaks using quarterly real GDP for14 OECD countries in the postwar period. We identify business cycle turning points using a computer algorithm and estimate the timing, size, and character of trend breaks using a general intervention model. We identify 34 trend break dates and 79 percent of these trend breaks occur at or near business cycle turning points which we interpret as confirming our hypothesis of a connection between business cycles and economic growth.

Suggested Citation

  • Torben Mark Pedersen & Anne Marie Elmer, 1998. "International Evidence on the Connection between Business Cycles and Economic Growth," Discussion Papers 98-23, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:9823
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andergassen, Rainer & Nardini, Franco, 2005. "Endogenous innovation waves and economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 16(4), pages 522-539, December.

    More about this item

    Keywords

    business cycles; economic growth; trend breaks; structural change; stochastic trends;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kud:kuiedp:9823. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Hoffmann (email available below). General contact details of provider: https://edirc.repec.org/data/okokudk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.