Synchronization of Cycles

Date

2006

Authors

Harding, Don
Pagan, Adrian

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

Many interesting issues are posed by synchronization of cycles. In this paper, we define synchronization and show how the degree of synchronization can be measured. We propose heteroscedasticity and serial correlation robust tests of the hypotheses that cycles are either unsynchronized or perfectly synchronized. Tests of synchronization are performed using data on industrial production, on monthly stock indices and on series that are used to construct the reference cycle for the United States. An algorithm is developed to extract a common cycle. It is used to extract the reference cycle for the United States and common cycles in stock prices and European industrial production.

Description

Keywords

Keywords: Algorithms; Correlation methods; Industrial economics; Inventory control; Synchronization; Business cycles; Common cycles; Factor models; Turning points; Economics Business cycles; Common cycles; Factor models; Synchronization; Turning points

Citation

Source

Journal of Econometrics

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

Restricted until

2037-12-31