Classical and Modern Business Cycle Measurement: The European Case.

Working paper

This paper intends to harmonize two different approaches to the analysis of the business cycle and in doing so it retrieves the stylized facts of the business cycle in Europe. We start with the ‘classical’ approach proposed in Burns and Mitchell (1946) of dating and analyzing the business cycle; we then adopt the ‘modern’ alternative: the Markov-switching time series model proposed in Hamilton (1989a). The model’s regime probabilities provide an optimal statistical inference of the turning po...

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Authors: Krolzig, H; Toro, J

• Publisher: Department of Economics (University of Oxford)
• Series: Discussion paper series
• Publication date: 2001-01-01
• Language: English