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Title: |
On the Use of Innovation Correlations to Study
Cyclical Co-movements in GDP and Its Components |
| Author: |
Abeysinghe,
Tilak; Choy, Keen Meng |
| Author
Affiliation: |
National U
Singapore |
| Source: |
International Economic Journal, Summer 2002, v. 16, no. 2, pp. 37-45 |
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Publication Date: |
Summer 2002 |
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Abstract: |
Innovation
cross correlations are sometimes used as indicators of cyclical
co-movements among economic variables. This note shows that care is
needed in making inferences about business cycle co-movements between
GDP and its components from an innovation cross correlation analysis
because of the effect of the national income accounting identity. The
point is illustrated with an empirical example from Singapore. |
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