Altuğ, Sumru; Tan, Barış; Gencer, Gözde - 2011
This paper characterizes the business cycle as a recurring Markov chain for a broad set of developed and developing … behavior of two key economic times series - industrial production and employment. The Markov chain approach is a parsimonious … indicator that combines information on these series is also constructed. Tests of equality of the estimated Markov chains across …