AUTHOR: Dilip M. Nachane, Amlendu Dubey
TITLE: The Spectral Envelope: An Application to the Decoupling Problem in Economics
In this paper we introduce the technique of spectral envelope into the analysis of decoupling problem in Economics. Decoupling refers to the phenomenon that the business cycles in emerging market economies are de-synchronized from cyclical movements in the advanced economies. The analysis shows that all the countries in the sample have a common cycle of approximately 42 months. The results point to a strong possibility of a common global cycle of a periodicity between 3 to 4 years.
Keywords: Spectral Envelope, Frequency Domain, Decoupling, Business Cycles
JEL Code: F47, F44, C32