Abstract
In recent years a renewed interest in univariate modelling of business cycles and long-run economic growth has emerged. In the traditional approach, the hump shape of deviations of gross domestic product (GDP) from an exponential trend is modelled by a second-order autoregressive process, AR(2) for short. This approach, of course, is in the tradition of the celebrated multiplier-accelerator model which can, under certain parameter restrictions, produced cyclical movements.
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Kähler, J., Marnet, V. (1994). International Business Cycles and Long-Run Growth: An Analysis with Markov-Switching and Cointegration Methods. In: Zimmermann, K.F. (eds) Output and Employment Fluctuations. Studies in Empirical Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57989-9_10
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DOI: https://doi.org/10.1007/978-3-642-57989-9_10
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