Open Economies Review

, Volume 25, Issue 1, pp 93–122

Do Institutions and Culture Matter for Business Cycles?


    • Koç University and CEPR
  • Fabio Canova
    • EUI and CEPR
Research Article

DOI: 10.1007/s11079-013-9298-0

Cite this article as:
Altug, S. & Canova, F. Open Econ Rev (2014) 25: 93. doi:10.1007/s11079-013-9298-0


We examine the relationship between cyclical fluctuations and macroeconomic, institutional, and cultural indicators for 46 countries from Europe and the Mediterranean basin. In the Mediterranean cycles are different: the duration of expansions is shorter; the amplitude of recessions is larger; and cyclical synchronization is smaller than elsewhere. Differences in cultural indicators have strong and significant associations with differences in the persistence and volatility of cyclical fluctuations and their synchronization.


Business cyclesInstitutions and cultureMediterranean countriesSynchronization
JEL ClassificationC32E32

Copyright information

© Springer Science+Business Media New York 2014