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We examine the comovements between the output indexes of three German sectors (manufacturing, mining, and agriculture) and the three corresponding sectoral stock market indexes. It is found that data with and without seasonal adjustment give mixed results on the long-run interaction between the sectoral indexes. Compared with data that are non-seasonally adjusted, the adjusted data offer weaker evidence on the cointegration relationship between a) the sectoral output indexes, b) sectoral stock indexes, and c) individual pairs of real and financial indexes. On short-run comovement, seasonally adjusted data offer stronger evidence on the presence of common synchronized and non-synchronized cyclical components. [ABSTRACT FROM AUTHOR]

This study assesses the claim that the Austrian economy depends mainly on the German business cycle. Controlling for possible influences from the US economy, it is confirmed that the Austrian and German industrial production indexes have a common long-term stochastic trend and German industrial production Granger-causes the Austrian industrial production in the short run. However, German and US shocks only account for a small proportion of Austrian industrial production variability. Further, it is found that the three countries share a non-synchronized common business cycle. [ABSTRACT FROM AUTHOR]

Examines the interaction between the German and Austrian economies using the advanced time series econometric techniques. Analysis of the impulse response and forecast error variance; Influences of German economy on Austrian economy; Application of vector error correction model; Link between German and Austrian economies.