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AUSTRALIAN BUSINESS CYCLE FACTS*
Author(s) -
FISHER LANCE A.,
OTTO GLENN,
VOSS GRAHAM M.
Publication year - 1996
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.1996.tb00052.x
Subject(s) - business cycle , economics , hodrick–prescott filter , macroeconomics , econometrics , monetary economics
This paper documents the post‐war business cycle facts for Australia. The Hodrick‐Prescott filter is used to remove the trend component from quarterly macroeconomic series. The business cycle facts we report are the volatilities of the cyclical (detrended) series and their cross correlations with cyclical real output. These facts are consistent with the business cycle facts reported for the United States, the United Kingdom and New Zealand with one exception. For most of the period since 1974, the real wage in Australia is strongly counter‐cyclical whereas for these countries it is procyclical.