Title
Trading Business-Cycle Depth For Duration Using An Economy-Specific Characteristic
Keywords
Business cycles depth; Business cycles duration; Real business cycle; U.S. business cycle asymmetry
Abstract
Regarding the trade-off between the depth and the duration of recessions, there exists a mounting empirical evidence of the idiosyncratic and non-synchronized behavior of the business cycle over time within and across countries. To account for the trade-off, a model is presented wherein an economy-specific parameter does control the magnitude, severity and persistence of the business cycle without the need to add an asymmetric functional form [that captures the propagation mechanism] to the model. The model results show that as much as half of a percentage point of GDP in depth and a relative difference of three years duration can be attributed to this parameter. The model implies a two-dimensional depth-duration space wherein we place the [average] depth-duration expansion and contraction for the U.S.
Publication Date
12-1-2006
Publication Title
Economics Bulletin
Volume
5
Issue
1
Number of Pages
-
Document Type
Article
Personal Identifier
scopus
Copyright Status
Unknown
Socpus ID
84892970120 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/84892970120
STARS Citation
Mikhail, Ossama, "Trading Business-Cycle Depth For Duration Using An Economy-Specific Characteristic" (2006). Scopus Export 2000s. 7431.
https://stars.library.ucf.edu/scopus2000/7431