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Method of analyzing business cycles in a transition economy : the case of Slovenia
Jagrič, Timotej ; Ovin, Rasto
In this paper, we studied cyclical patterns in a transition economy. We introduced a dynamic perspective into the analysis by applying multivariate wavelet analysis. The wavelet covariance and ...wavelet correlation were defined and applied to the analysis of business cycles as an alternative to the traditional cross-spectrum analysis. The main findings indicated that there is a significant business cycle component in aggregate economic activity and that business cycles are asymmetric and highly synchronized with the EU cycle. Additionally, it was found that three distinctive periods of business cycle synchronization exert an important impact on the properties of a business cycle.
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