Advances in Markow switching models

This collection features cutting-edge papers on business cycles and financial analysis, focusing on advancements in Markov-switching models applied to these areas. The introduction reviews existing methods and recent findings from the past decade. Individual chapters examine U.S. and European business cycles, emphasizing monetary policy, oil shocks, and the interrelationships among key variables. The text also discusses the short-run and long-run impacts of economic recessions. Another significant topic is the detailed exploration of currency crises and the potential for bubbles or fads in stock prices. A concluding chapter presents valuable new insights into testing regime-switching behavior. Overall, the book offers a comprehensive overview of innovative methods and results in estimation and inference through Markov-switching time-series analysis. A notable aspect is its illustration of diverse applications using a unified methodology. This theme is particularly relevant for macroeconomics readers, econometrics professionals, scholars, and graduate students. Gratitude is expressed to the authors for their impactful contributions and to the reviewers for their meticulous attention in evaluating the work.