Stylized Facts and International Business Cycles - The German Case

Arbeitspapier

This paper studies the business cycle in Germany using the HP-filter (Hodrick/Prescott (1997)) to isolate the cyclical component. A two-country International Business Cycle model in line with Baxter/Crucini (1995) is built to explain these facts. The combination of GHH-preferences with taste shocks resulting from government consumption is shown to be an important feature of the German business cycle. A VAR model for the exogenous variables is estimated that enables the model not only to account well for the observed positive international correlations of outputs, consumptions and savings but also for their lead-lag relationship. Hours worked and investments are positively correlated in this model - a property not realized in other single-good models of the International Business Cycle in the literature.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Volkswirtschaftliche Diskussionsbeiträge ; No. 69-98

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Open Economy Macroeconomics
• Subject: International Real Business Cycles ; Stylized Facts ; GHH-preferences ; Konjunktur ; Real Business Cycle ; Konjunkturzusammenhang ; Schätzung ; Deutschland ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gail, Michael
• Event: Veröffentlichung
• (who): Universität Siegen, Fakultät III, Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht
• (where): Siegen
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/83211
• Last update: 10.03.2025, 11:41 AM CET