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Business confidence and cyclical turning points: a Markov-switching approach

Abstract
Markov regime-switching analysis is used to consider the relationship between business confidence and the probability of turning points in cyclical GDP. We find, in an application to New Zealand, that confidence is related to both the deepness and duration of the business cycle and is asymmetric regarding the probability of the economy remaining in a given regime. Overall, the New Zealand business confidence series is a useful indicator of cyclical turning points.
Type
Journal Article
Type of thesis
Series
Citation
Holmes, M.J. & Silverston, B. (2010). Business confidence and cyclical turning points: a Markov-switching approach. Applied Economics Letters, 17(3), 229-233.
Date
2010
Publisher
Routledge
Degree
Supervisors
Rights