Abstract
This article identifies cycles of Gabon GDP, those of its main components (consumption, investment, government spending, exports and imports), and their characteristics (duration, severity and depth), using a band-pass filter and according to the algorithm of Bry and Boschan. Synchronization and the concordance of the cycles of GDP and those of its components are highlighted. Similarly, the contributions of cycles of variables that make up the GDP to the cycles of this greatness are studied according to Stock and Watson’s way (1998).
Highlights
After being considered as outdated subject a few decades ago, the study of the business cycle is experiencing a resurgence of interest in favor of international financial crises and sovereign debts within the European Union.Introduced by [1] of the National Bureau of Economic Research (NBER) business cycle, called a “classic” cycle or cycle of the Gross Domestic Product (GDP), according to the authors, composed “of expansions occurring at about the same time in many economic sectors, followed by recessions, constraints and revivals which fuse to the phase of expansion of the cycle”.Traditionally, two types of approaches are being considered to explain the phenomenon of economic cycle in a country: exogenous approaches and endogenous theories
Introduced by [1] of the National Bureau of Economic Research (NBER) business cycle, called a “classic” cycle or cycle of the GDP, according to the authors, composed “of expansions occurring at about the same time in many economic sectors, followed by recessions, constraints and revivals which fuse to the phase of expansion of the cycle”
Using the method of [13], we show that all the GDP variables are procyclical and there is a synchronization between the GDP cycle and those of its components
Summary
After being considered as outdated subject a few decades ago, the study of the business cycle is experiencing a resurgence of interest in favor of international financial crises and sovereign debts within the European Union. For the supporters of endogenous theories, the appearance of economic cycles in a country is linked to the economic activity for itself. The theory of real cycles is based on pre-Keynesian analyses of Hayek that stress the dynamics of the spread in time and in all the sectors of the shocks. In this regard, it underlines the importance of technology shocks in the explanation of the fluctuations of the activity and the behavior of intertemporal optimization of the type agent in response to the changes occurred in its environment.
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