Plucking models of business cycle fluctuations: evidence from the G-7 countries

Friedman’s ‘plucking’ model, in which output cannot exceed a ceiling level but is occasionally plucked downward by recessions, is tested using Kim and Nelson’s formal econometric specification on output data from the G-7 countries. Considerable support for the model is obtained, leading us to conclu...

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Bibliographic Details

Main Authors:	Terence Mills, Ping Wang
Format:	Default Preprint
Published:	2000
Subjects:	Other economics not elsewhere classified business cycle asymmetry state space models G-7 countries Markov switching Economics Economics not elsewhere classified
Online Access:	https://hdl.handle.net/2134/1126
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