Using three different econometric methodologies, this paper identifies business cycles fluctuations in Canadian regions using quarterly real GDP for the period 1961:1 - 2000:1. With the estimates of the transitory and permanent components, as well as filtered and smoothed probabilities of being...

Following the methodology used by Kim and Nelson (1999b), I find estimates of the permanent and transitory components for Canadian regions based on the Friedman model of business fluctuations. The empirical results support the theoretical predictions that negative transitory shocks hit the...