Definition: Cross-correlation of business cycles

Category: OECD - Business tendency surveys

A measure of how closely aligned the timing of movements in activity are for two countries over their business cycles. The cross-correlation statistic can range from -1 to +1. In general, the closer the cross-correlation is to the value of +1 the more in phase and synchronised the business cycles will be. A value of -1 would indicate that the two series move perfectly in a countercyclical direction. A value near zero indicates that there is no statistical relationship between the series. http://ec.europa.eu/eurostat/ramon/statmanuals/files/OECD_Business_Tendency_Surveys_Handbook_EN.pdf