RQA correlations on business cycles: A comparison between real and simulated data

Business cycles are complex phenomena which oscillate because of economic downturns and expansions. Recurrence quantification analysis (RQA) detects state changes without necessitating any a priori mathematical assumption and highlight hidden features of the dynamics both at equilibrium and near transition phases. This paper aims to explore some potential application of recurrence quantification analysis in detecting cycles in economy and compares them with oscillations derived from a Kaldor-Kalecki non-linear model.