A STATE-LEVEL ANALYSIS OF BUSINESS CYCLE ASYMMETRY

Authors


Mark A. Thompson, Rawls College of Business, Texas Tech University, Lubbock, TX 79409-2101, USA. Tel.: +(806) 742-1535; Email: mark.thompson@ttu.edu. We thank the editor and two reviewers for helpful comments and suggestions.

ABSTRACT

This paper provides a comprehensive examination of asymmetry in US state-level business cycles. We consider two different types of asymmetry in the adjustment process of a stationary time series: deepness and steepness. The data used in the study are a comparable set of state-level coincident indexes (SCIs) developed by the Federal Reserve Bank of Philadelphia. Specifically, results from using the momentum-threshold autoregressive model provide evidence of asymmetry in the growth rate of 23 SCIs as well as the equivalent national coincident index.

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