Please use this identifier to cite or link to this item: http://hdl.handle.net/2381/7478
Title: Nonlinear impacts of international business cycles on the UK - A Bayesian smooth transition VAR approach
Authors: Gefang, Deborah
Strachan, Rodney
First Published: Jan-2008
Publisher: Dept. of Economics, University of Leicester
Abstract: Employing a Bayesian approach, we investigate the impact of international business cycles on the UK economy in the context of a smooth transition VAR. We find that British business cycle is asymmetrically influenced by the US, France and Germany. Overall, positive and negative shocks generating in the US or France affect the UK in the same directions of the shock. Yet, a shock emanating from Germany always exerts negative accumulative effects on the UK. More strikingly, a positive shock arising from Germany negatively affects UK output growth more than a negative shock from Germany of the same size. These results suggest that the appropriate UK economic policy depends upon the origin, size and direction of the external shocks.
Series/Report no.: Papers in Economics
08/4
Links: http://www.le.ac.uk/economics/research/discussion/papers2008.html
http://hdl.handle.net/2381/7478
Type: Report
Appears in Collections:Reports, Dept. of Economics

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