Business Cycles in European Union: Brief Comparison of the Economic Behaviour of Member Countries

Abstract

We present the business cycles results of European Union Countries in terms of volatility, persistence and cross country correlation. The results are in line with business cycles stylized facts and show a high degree of cross country correlation between member countries, although the volatilities presented are quite heterogeneous, suggesting different impacts of shocks on economies. A detailed study of GDP business cycle shows that business cycles in Germany, France, Italy, Belgium, Holland, Portugal and Spain are coincident, but there is no evidence of that fact for Austria, Finland, Sweden, Denmark and specially for United Kingdom.