Empirical Evidence on Growth and Volatility

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Empirical Evidence on Growth and Volatility

Author Info

Michael Stastny
Martin Zagler

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Martin Zagler

Abstract

This paper empirically investigates the relationship between long-run economic growth and output volatility. There is an emerging theoretical literature on the topic which is inconclusive on the size and direction of the relationship. We analyze this relationship empirically for the time series experience of 21 OECD countries between the years 1961 and 2005. After applying a pooled OLS estimator and a series of robustness checks we conclude that there is strong empirical evidence for a positive relationship between output variability and economic growth.

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Paper provided by European University Institute in its series RSCAS Working Papers with number 2007/22.

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Date of creation: 28 Sep 2007
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Handle: RePEc:rsc:rsceui:2007/22

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This paper has been announced in the following NEP Reports:

NEP-ALL-2008-04-21 (All new papers)
NEP-CSE-2008-04-21 (Economics of Strategic Management)

References listed on IDEAS
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.:

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Other versions:
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Other versions:
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Other versions:
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Other versions:
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(explanations, 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.)

Martin Falk & Franz Sinabell, 2009. "A spatial econometric analysis of the regional growth and volatility in Europe," Empirica, Springer, vol. 36(2), pages 193-207, May. [Downloadable!] (restricted)

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