Common factors in Latin America's business cycles

A-Tier
Journal: Journal of Development Economics
Year: 2011
Volume: 95
Issue: 2
Pages: 212-228

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a common factor approach to reconstruct new business cycle indices for Argentina, Brazil, Chile, and Mexico ("LAC-4") from a new dataset spanning 135 years. We establish the robustness of our indices through extensive testing and use them to explore business cycle properties in LAC-4 across outward- and inward-looking policy regimes. We find that output persistence in LAC-4 has been consistently high across regimes, whereas volatility has been markedly time-varying but without displaying a clear-cut relationship with openness. We also find a sizeable common regional factor driven by output and interest rates in advanced countries, including during inward-looking regimes.

Technical Details

RePEc Handle
repec:eee:deveco:v:95:y:2011:i:2:p:212-228
Journal Field
Development
Author Count
3
Added to Database
2026-01-25