@ARTICLE{Rabiej_Agnieszka_How_2023,
 author={Rabiej, Agnieszka and Sikora-Kruszka, Dominika and Torój, Andrzej},
 number={No 4},
 journal={Central European Journal of Economic Modelling and Econometrics},
 pages={345-383},
 howpublished={online},
 year={2023},
 publisher={Oddział PAN w Łodzi},
 abstract={In a national economy, are individual subnational regions business cycle takers or setters? We address this important regional policy question by investigating regional business cycles at NUTS-3 granularity in Poland (N = 73), using two metrics in parallel: GDP dynamics and unemployment. To extract the business cycle, we use a spatial Markov switching model that features both idiosyncratic business cycle fluctuations across regions (as a 2-state chain), as well as spatial interactions with other regions (as spatial autoregression). The posterior distribution of the parameters is simulated with a Metropolis-withinGibbs procedure. We find a clear division into business cycle setters and takers, the latter being largely (but not only) non-metropolitan regions.},
 type={Article},
 title={How Regional Business Cycles Diffuse through Space and Time: Evidence from Spatial Markov Model of Polish NUTS-3 Regions},
 URL={http://journals.pan.pl/Content/129947/mainFile.pdf},
 doi={10.24425/cejeme.2023.149072},
 keywords={business cycle, spatial autoregression, NUTS-3, Markov switching},
}