Interaction effects in the relationship between growth and finance
AbstractThis paper analyzes how interacting financial development with initial income, macroeconomic volatility and policy variables, can improve our understanding of convergence and divergence across countries, and also restore the significance of correlations between growth and volatility and therefore between growth and macropolicy, even when controlling for country fixed effects or when eliminating countries with extreme policies or bad institutions.
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Bibliographic InfoPaper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/17747/.
Date of creation: 2006
Date of revision:
Publication status: Published in Capitalism and Society (2006) v.1, p.1-27
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Web page: http://www.ucl.ac.uk
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- Philippe Aghion & Peter Howitt & David Mayer-Foulkes, 2004.
"The Effects of Financial Development on Convergence: Theory and Evidence,"
DEGIT Conference Papers
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- Philippe Aghion & Peter Howitt & David Mayer-Foulkes, 2004. "The Effect of Financial Development on Convergence: Theory and Evidence," NBER Working Papers 10358, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P. & Mayer-Foulkes, D., 2005. "The effect of financial development on convergence: theory and evidence," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Howitt, Peter & Mayer-Foulkes, David & Aghion, Philippe, 2005. "The Effect of Financial Development on Convergence: Theory and Evidence," Scholarly Articles 4481509, Harvard University Department of Economics.
- Bernanke, B. & Gertler, M. & Gilchrist, S., 1998.
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98-03, C.V. Starr Center for Applied Economics, New York University.
- Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393 Elsevier.
- Ben Bernanke & Mark Gertler & Simon Gilchrist, 1998. "The Financial Accelerator in a Quantitative Business Cycle Framework," NBER Working Papers 6455, National Bureau of Economic Research, Inc.
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