, employment and GDP in both the US and Mexico. For the subsample preceding the break our findings are similar to those of earlier … parameters being higher than 1 in the case of Mexico …

We use the regime-switching econometric models in Hamilton (1989) and Filardo (1994) to study business cycles in Mexico …. In particular, we characterize the ups and downs of economic activity in Mexico. As a proxy for economic activity, we use … sector indicators. Our results show that recessions in Mexico are deeper and shorter than expansions …

"permanent-like" effects in response to transitory shocks. The imperfect information model calibrated to Mexico predicts a higher …