An investigation of the behaviour of Australia's business cycle

Narayan, Paresh Kumar 2008, An investigation of the behaviour of Australia's business cycle, Economic modelling, vol. 25, no. 4, pp. 676-683, doi: 10.1016/j.econmod.2007.10.012.

Attached Files
Name Description MIMEType Size Downloads

Title An investigation of the behaviour of Australia's business cycle
Author(s) Narayan, Paresh KumarORCID iD for Narayan, Paresh Kumar
Journal name Economic modelling
Volume number 25
Issue number 4
Start page 676
End page 683
Publisher Elsevier B.V.
Place of publication Amsterdam, The Netherlands
Publication date 2008-07
ISSN 0264-9993
Keyword(s) cointegration
common cycles
health expenditures
permanent and transitory shocks
Summary In this paper we examine the relative importance of permanent and transitory shocks in explaining variations in income, consumption and investment at business cycle horizons for Australia. We use the common trend–common cycle restrictions to estimate a variance decomposition of shocks, and find that over short horizons the bulk of the variations in income and investment are due to permanent shocks, while transitory shocks explain the bulk of the variations in consumption. The former finding is consistent with real business cycle models which attribute business cycles to aggregate supply shocks, while the findings for consumption are consistent with the Keynesian view, which attributes business cycles to aggregate demand shocks.
Language eng
DOI 10.1016/j.econmod.2007.10.012
Field of Research 140305 Time-Series Analysis
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2008
Copyright notice ©2007, John Wiley & Sons, Ltd
Persistent URL

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
Connect to link resolver
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 6 times in TR Web of Science
Scopus Citation Count Cited 6 times in Scopus
Google Scholar Search Google Scholar
Access Statistics: 967 Abstract Views, 6 File Downloads  -  Detailed Statistics
Created: Fri, 14 Aug 2009, 13:51:23 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact