On business cycles synchronization in Europe: A note on network analysis

DAVID MATESANZ GOMEZ; GUILLERMO J. ORTEGA

PHYSICA A - STATISTICAL AND THEORETICAL PHYSICS

ELSEVIER SCIENCE BV

Lugar: Amsterdam; Año: 2016 vol. 462 p. 287 - 296

0378-4371

In this paper we examine synchronization in European business cycles from 1950 to 2013.Herein we further investigate previous and controversial results that arise from complexnetwork analysis of this topic. By focusing on the importance of different configurationsin the commonly used rolling windows and threshold significance levels, we find that selections are critical to obtaining accurate networks. Output co-movement and connectivityshow no appreciable changes during the beginning of the Euro period, but rather dramaticjumps are observed since the outbreak of the global financial crisis. At this time, previouslead/lag effects disappeared and in-phase synchronization across Europe was observed