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SSRN Electronic Journal
Article . 2010 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2010
Data sources: EconStor
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A New Approach to Analyzing Convergence and Synchronicity in Growth and Business Cycles: Cross Recurrence Plots and Quantification Analysis

Authors: Crowley, Patrick; Aaron, Schultz;

A New Approach to Analyzing Convergence and Synchronicity in Growth and Business Cycles: Cross Recurrence Plots and Quantification Analysis

Abstract

Convergence and synchronisation of business and growth cycles are important issues in the efficient formulation of euro area economic policies, and in particular European Central Bank (ECB) monetary policy. Although several studies in the economics literature address the issue of synchronicity of growth within the euro area, this is the first to address the issue using cross recurrence analysis. The main findings are that member state growth rates had largely converged before the introduction of the euro, but there is a wide degree of different synchronisation behaviours which appear to be non-linear in nature. Many of the euro area member states display what is termed here 'intermittency' in synchronization, although this is not consistent across countries or members of the euro area. These differences in synchronization behaviors could introduce further challenges in managing the country-specific effects of the common monetary policy in the euro area.

Country
Germany
Keywords

Euro area; business cycles; growth cycles; recurrence plots; non-stationarity; complex systems; surrogate analysis, E32 - Business Fluctuations, Euro area; business cycles; growth cycles; recurrence plots; recurrence quantification analysis; non-stationarity; complex systems; surrogate analysis., F43 - Economic Growth of Open Economies, complex systems, E32, C14 - Semiparametric and Nonparametric Methods: General, ddc:330, F15, nonstationarity, recurrence plots, business cycles, Cycles, growth cycles, surrogate analysis, Euro area, C65, jel: jel:F43, jel: jel:C65, jel: jel:E32, jel: jel:C14, jel: jel:F15

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Powered by OpenAIRE graph
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Average
Average
Average
bronze