Work

Do Institutions and Culture Matter for Business Cycles

Year: 2013

Type: preprint

Abstract: We examine the relationship between macroeconomic, institutional, and cultural indicators and cyclical fluctuations for European, Middle Eastern and North African Mediterranean countries. Mediterranean cycles are different from EU cycles: the duration of expansions is shorter; the amplitude and the output costs of recessions are larger; and cyclical synchronization is smaller. Differences in macroeconomic and institutional indicators partly account for the relative differences in cyclical synchronization. By contrast, differences in cultural indicators account for relative differences in the persistence, the volatility and the synchronization of cyclical fluctuations. Theoretical and policy implications are discussed.

Source: RePEc: Research Papers in Economics

Authors: Sumru Altuğ, Fabio Canova

Institutions: Koç University, Centre for Economic Policy Research, American University of Beirut, Center for Economic and Policy Research, BI Norwegian Business School

Language: English

Topic: Culture, Economy, and Development Studies

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3124617542

Cites: 25

Cited by: 2

Related to: 10