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Finance and Macroeconomic Volatility

Author

Listed:
  • Cevdet Denizer

    (The World Bank)

  • Murat Iyigun

    (The Federal Reserve Board)

  • Ann Owen

    (Hamilton College)

Abstract

Countries with more developed financial sectors experience less fluctuations in real per capita output, consumption and investment growth. However, the manner in which the financial sector develops matters. The relative importance of banks in the financial system is important in explaining consumption and investment volatility, and the proportion of credit provided to the private sector explains the volatility of consumption and output. The main results are generated using fixed-effects estimation with panel data from 70 countries covering the years 1956 through 1998.

Suggested Citation

  • Cevdet Denizer & Murat Iyigun & Ann Owen, 2000. "Finance and Macroeconomic Volatility," Macroeconomics 0004015, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0004015
    Note: Type of Document - pdf; prepared on IBM PC ; to print on Postscript; pages: 22 ; figures: tables available in separate file, fincyctbl.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    financial development; business cycles; economic fluctuations;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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