Page - 6 - in The Austrian Business Cycle in the European Context

6 Figure 1: Steps of business cycle analysis DATA (suspected lo carry business cycle variation, preferentially subannual) D business cycle variation extraction - indirect filtering (removing non- business cycle variations) - direct filtering the BC variations - modelling the BC D Determination d reference series -multivariate: classical NBER approach, index models -univariate: ad hoc determination D Analysis of co-movement Observing lead and lag structures between the series using averages, medians, cross-correlations, coherences or dynamic correlation. D Dating the business cycle - NBER approach -Bry-Boschan algorithm - Parametric approaches (TAR. MS-AR, ... ) Source: Own illustration.