Output dynamics of the G7 countries : stochastic trends and cyclical movements

Yin-Wong Cheung ; Frank Westermann

Using a time series framework, the paper studies the interactions of the annual real per capita GDP data of the G7 countries. We find evidence of six common nonstationary processes behind the international output dynamics. In addition, there is evidence for the existence of a common business cycle among these countries. The trend and cycle accounts for the presence of both the common nonstationary and cyclical factors. It is found that the relative variability and the correlation of the trend and cycle components are not similar across the G7 countries.

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Year of publication:	1999
Authors:	Cheung, Yin-Wong ; Westermann, Frank
Publisher:	Munich : Univ., Center for Economic Studies [u.a.]
Subject:	Konjunkturzusammenhang \| Business cycle synchronization \| Einheitswurzeltest \| Unit root test \| Schätzung \| Estimation \| G7-Staaten \| G7 countries