Kose, M. Ayhan; Otrok, Christopher; Whiteman, Charles H. - International Monetary Fund (IMF) - 2005
This paper studies the changes in world business cycles during 1960-2003. We employ a Bayesian dynamic latent factor model to estimate common and country-specific components in the main macroeconomic aggregates of the Group of Seven (G-7) countries. We then quantify the relative importance of...