The course of the great depression: a consistent business cycle dating approach

Arbeitspapier

This study dates business cycles in 10 European countries, the United States, and Japan between 1925 and 1936. The aim is to establish a consistent dating of the world economic crisis, which is a precondition for understanding the sharp economic decline in many countries during the interwar period. Three approaches were applied that are common in business cycle dating. First, a deskriptive analysis infers on recessions based on the two-consecutive quarters approach often associated with the US National Bureau of Economic Research. Second, the time series is decomposed into trend and cycle using the Hodrick-Prescott (1980) filter. The third approach is to use Markov-regime switching models, which was proposed by Hamilton (1989) for such purposes. The results of confirm that the Great Depression was a global phenomenon, not limited to the US or Germany. Business cycle comovement in the interwar period is at a level comparable to the post-WWII period. This finding points at the contribution of international business cycle integration to the course of the decline in single countries.

Object Details

• ISBN: 3938369620
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge ; No. 2007/14

Classification and Topics

• Classification: Wirtschaft
• Subject: Konjunktur ; Wirtschaftsgeschichte ; Zeitreihenanalyse ; Zeit ; Konjunkturzusammenhang ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heinemeyer, Hans Christian
• Event: Veröffentlichung
• (who): Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
• (where): Berlin
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/28059
• Last update: 10.03.2025, 11:41 AM CET