1 / 25

Comovement of Economic Variables and Business Cycles Stylized Facts based on Chapter 3

Outline of the class:. Characteristics of comovement: (a) correlation; (b) relative volatility; (c) leading/lagging Behavior of main economic variables during the business cycles . Correlation of economic variables:. Variables X and Y are said to be positively correlated if X is likely to in

lionel
Download Presentation

Comovement of Economic Variables and Business Cycles Stylized Facts based on Chapter 3

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Comovement of Economic Variables and Business Cycles Stylized Facts (based on Chapter 3)

    2. Outline of the class: Characteristics of comovement: (a) correlation; (b) relative volatility; (c) leading/lagging Behavior of main economic variables during the business cycles

    3. Correlation of economic variables: Variables X and Y are said to be positively correlated if X is likely to increase when Y increases X is likely to decrease when Y decreases Variables X and Y are said to be negatively correlated if X is likely to decrease when Y increases X is likely to increase when Y decreases Positive or negative correlation can be illustrated on a time series plot (plot X and Y against time) or on a scatter plot (plot X against Y for different observations)

    4. Two graphical ways of illustrating correlation

More Related