shown to help explain the negative response of labour input to a positive, permanent technology shock, several asset pricing …

, infrequent Markov Switching negative shock and domestic idiosyncratic components. The findings show that Hamilton’s 3 year net …

set of countries (for example, a weather-related shock, a domestic policy shock); or they can be common to the entire … mechanisms, in turn, are important because a shock that was initially country-specific, originating in one country, might … explaining regional output comovements and the spillover effects between neighbors are significant. Second, volatility matters …

components, common transitory components, infrequent Markov Switching negative shock and domestic idiosyncratic components. The … findings show that the common components explain a 53.1% average volatility of G7 GDPs from 1960 to 2002. Despite the moderated … volatility of G7 economies, the G7 business cycle (except Japan) has become more synchronized in its fluctuations. In addition …