, Volume 3, Issue 4, pp 423–456 | Cite as

Cycles inside cycles: Spanish regional aggregation

  • Maria Dolores GadeaEmail author
  • Ana Gómez-Loscos
  • Antonio Montañés
Open Access
Original Article


This paper sets out a comprehensive framework to identify regional business cycles within Spain and analyses their stylised features and the degree of synchronisation both within them and between them and the Spanish economy. We show that the regional cycles are quite heterogeneous although they display some degree of synchronisation. We also propose a dynamic factor model to cluster the regional comovements. We find that the Spanish business cycle is not the same as those of the 17 regions, but is the sum of the different regional behaviours. Clusters with a high industrial weight, per capita income and human capital and a low unemployment rate are also more synchronized. The implications derived from our results are useful both for policy makers and analysts.


Business cycle Synchronisation measures Dynamic factor models Regional policy 

JEL Classification

C22 C32 E32 R11 


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© The Author(s) 2011

This article is published under license to BioMed Central Ltd. Open Access This article is distributed under the terms of the Creative Commons Attribution License which permits any use, distribution and reproduction in any medium, provided the original author(s) and source are credited.

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Authors and Affiliations

  • Maria Dolores Gadea
    • 1
    Email author
  • Ana Gómez-Loscos
    • 2
  • Antonio Montañés
    • 1
  1. 1.Department of Applied EconomicsUniversidad de ZaragozaSaragossaSpain
  2. 2.Fundear and Universidad de ZaragozaSaragossaSpain

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