The objective of this paper is to explore the transmission of non-bank capital shocks through banking networks. We develop a methodology to construct non-bank capital shocks, idiosyncratic shocks, using labor productivity shocks to large firms. We document a change in the relationship between...

An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from...

A number of studies have documented a reduction in aggregate macroeconomic volatility beginning in the early 1980s, i.e., the quot;Great Moderation.quot; This paper documents the Great Moderation at the state level, finding significant heterogeneity in the timing and magnitude of states'...

This paper identifies the expansion and contraction phases of New Zealand's national and regional house prices, by employing techniques typically used to study cycles in real activity, the so-called Classical cycle dating method. We then enquire into the nature of the cycles, addressing five...

We place regional industry structures at centre stage in currency union analysis, decomposing differences between regional and aggregate cycles into industry structure and industry cycle effects. The industry structure effect indicates whether a region's industry structure causes its cycle to...

We use National Bank of New Zealand Regional Economic Activity data, to identify and characterise classical business cycle turning points, for New Zealand's 14 regions and aggregate New Zealand activity. Using Concordance statistic measures, logistic model and GMM estimation methods, meaningful...

We analyse the link between supply chains and the extent to which the Great Recession has affected national economies. Our analysis is in two steps, namely first for value added measures of supply chains and then for the Grubel-Lloyd index using gross-export data. Regarding value added measures...

It is well-documented that housing leads the business cycle at the national level. Dating back as far as the great depression, nearly every recession or boom has been preceded by a respective drop or rise in residential investment (Green, 1997; Leamer, 2007). However, neither the business cycle nor...

Okun's law is an empirical relationship that measures the correlation between the deviation of the unemployment rate from its natural rate and the deviation of output growth from its potential. This relationship is often referred to by policy makers and used by forecasters. In this paper, we...

The aim of this paper is to show the usefulness of Finite Mixture Markov Models (FMMMs) for regional analysis. FMMMs combine clustering techniques and Markov Switching models, providing a powerful methodological framework to jointly obtain business cycle datings and clusters of regions that...