Do Institutions and Culture Matter for Business Cycles?

Arbeitspapier

We examine the relationship between institutions, culture and cyclical fluctuations for a sample of 45 European, Middle Eastern and North African countries. Better governance is associated with shorter and less severe contractions and milder expansions. Certain cultural traits, such as lack of acceptance of power distance and individualism, are also linked business cycle features. Business cycle synchronization is tightly related to similarities in the institutional environment. Mediterranean countries conform to these general tendencies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 1217

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Business Fluctuations; Cycles
• Subject: Business cycles ; institutions ; culture ; Mediterranean countries ; synchronization ; Konjunkturzusammenhang ; Institutionelle Infrastruktur ; Nationalkultur ; Systemvergleich ; Europa ; Mittlerer Osten ; Nordafrika

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Altug, Sumru ; Canova, Fabio
• Event: Veröffentlichung
• (who): Koç University-TÜSİAD Economic Research Forum (ERF)
• (where): Istanbul
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/108596
• Last update: 10.03.2025, 11:42 AM CET