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Panel Data Evidence on the Role of Education in the Growth-Volatility Relationship

  • Abbi M Kedir

    ()

  • Nor Yasmin Mhd Bani

The investigation of the growth-volatility link is an important one in empirical macroeconomics. There is no empirical evidence supporting the predictions of recent theoretical models that incorporate and explicitly recognize the role of human capital in this link. Using a panel data, we show empirically how the detrimental effect of output volatility on growth is diluted by education. We provide robustness checks and policy implications of our finding.

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File URL: http://www.le.ac.uk/economics/research/repec/lec/leecon/dp12-04.pdf
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 12/04.

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Date of creation: Mar 2012
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Handle: RePEc:lec:leecon:12/04
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  9. Matteo Bobba & Decio Coviello, 2006. "Weak Instruments and Weak Identification in Estimating the Effects of Education on Democracy," Research Department Publications 4472, Inter-American Development Bank, Research Department.
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  17. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950-2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
  18. Erik Canton, 2002. "Business cycles in a two-sector model of endogenous growth," Economic Theory, Springer, vol. 19(3), pages 477-492.
  19. Caporale, Tony & McKiernan, Barbara, 1998. "Interest Rate Uncertainty and the Founding of the Federal Reserve," The Journal of Economic History, Cambridge University Press, vol. 58(04), pages 1110-1117, December.
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