To be able to grasp more personal characteristics, such as reasons and processes behind GDPs' behaviors, in-depth interviews should be performed to collect qualitative data [ 33].
The applied linear models do not contemplate asymmetries in the behavior of GDP, and thus the generated cycles overestimate or underestimate the output gap, especially in the periods before 1990, when Peruvian GDP growth was very irregular.
In the case of the Peruvian economy, several authors have tried to model the behavior of GDP by different methods, which can be classified as linear and non-linear.
Second, the structural reforms of the early 1990s implied a profound change in the behavior of GDP, so that it is not useful to assume a Markov process for the entirety of the series.
Explanatory variables such as population of a country/region, its trading behavior, real GDP per capita, and so on, are used as control variables to capture its economic characteristics.
Its inverse, resource intensity (resource per GDP) has the reverse behavior, with higher values indicating environmentally inefficient economies.
Peruvian GDP shows a very irregular behavior, as expected from a developing country.
Over this period, there is indeed a convergent behavior of Greek GDP.
And, we connect these features to the dismal behavior of its GDP per capita path, over the last four decades, as well as its present crisis.
Moreover, the visual inspection of cycles against recessionary periods is in line with the behavior or Peruvian GDP in the last 30 years, so that this new method can constitute a useful tool in the measurement of cycles of the Peruvian economy.
