Holidays and the economic growth of nations
AbstractThere is sufficient microeconomic evidence that holidays are important to economic life. Is there similar support at the macroeconomic level? This exploratory paper uses a simple approach to assess the impacts of holidays on the economic growth rates of 182 nations in 2002. It finds that the human development level has a larger effect on economic growth rate than holidays. At the aggregate level holidays affect economic growth positively, but in a statistically insignificant way. For example, increasing by one day the number of holidays per year adds 0.30% to annual growth rate. Unlike non-religious holidays, religious holidays, whether Christian or non-Christian, affect economic growth negatively. The results are meaningful, yet statistically weak insofar as their explanatory power is only around 20%. They suggest that instruments for holidays, such as total sales revenue during holidays ,or something, other than the number of holidays, may be better explanatory variables. One can think of any number of fixes like remodeling the problem, choosing alternative estimators and/or functional forms. For now, those fixes belong to future efforts.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17326.
Date of creation: 12 Sep 2009
Date of revision:
Holidays; economic growth; Madonna; human development index (HDI);
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-FDG-2009-09-26 (Financial Development & Growth)
- NEP-TUR-2009-09-26 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sudhir Anand and Amartya Sen, 1994. "Human development Index: Methodology and Measurement," Human Development Occasional Papers (1992-2007) HDOCPA-1994-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
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