In this paper, we estimate a GVAR model in order to study the transmission of shocks between the EU15 and the USA economies, respectively, on a quarterly basis in the 2000 (Q1)–2011 (Q4) time span. Our work is based on the global variables of trade and credit which act as the transmission...

Empirical studies find that fluctuations in output and other macroeconomic aggregates are positively related across countries. Economic theory focuses on two main explanations: common shocks and common transmission mechanisms. In this paper, we conduct an empirical analysis of the international...

Business cycle synchronization is a useful framework for analyzing the transmission of economic fluctuations. This work checks for synchronization between the USA and the EU-15 economies tracing the timing pattern and the magnitude of the synchronization. It identifies and estimates the link...