Does Austria respond to the German or the US business cycle?

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)33-42
Journal / PublicationInternational Journal of Finance and Economics
Volume5
Issue number1
StatePublished - 2000
Externally publishedYes

Abstract

This study assesses the claim that the Austrian economy depends mainly on the German business cycle. Controlling for possible influences from the US economy, it is confirmed that the Austrian and German industrial production indexes have a common long-term stochastic trend and German industrial production Granger-causes the Austrian industrial production in the short run. However, German and US shocks only account for a small proportion of Austrian industrial production variability. Further, it is found that the three countries share a non-synchronized common business cycle. Copyright (C) 2000 John Wiley and Sons, Ltd.

Research Area(s)

  • Codependence test, Cointegration test, Common feature test, Long-term co-movement, Non-synchronized common business cycle, Output interaction, Synchronized business cycles