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Volatility in European Regions

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  • Irene Brunetti
  • Davide Fiaschi
  • Lisa Gianmoena
  • Angela Parenti

Abstract

is paper examines the growth rate volatility of per capita GDP of European regions in 1992-2008. We measure the regional volatility using a new methodology based onMarkov matrices and we investigate its main determinants. Volatility displays a geographical pattern and a significant spatial dependence. Output composition appears one of the main driver of volatility; among the other determinants we find a negative impact of the size of regional economies and of the flexibility of labour market, and a positive impact of the sectoral concentration, of the financialization of economy, and of the participation to EMU.

Suggested Citation

  • Irene Brunetti & Davide Fiaschi & Lisa Gianmoena & Angela Parenti, 2015. "Volatility in European Regions," Discussion Papers 2015/201, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2015/201
    Note: ISSN 2039-1854
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    Cited by:

    1. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of Resilience in European Regions During the Great Recession: a Bayesian Model Averaging Approach," Discussion Papers 2018/235, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. KYDROS Dimitrios & FILENTA Pagona, 2022. "Literature Review of Economic and Regional Development through Quantitative Methods and Social Network Analysis," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    3. Irene Brunetti & Davide Fiaschi & Lisa Gianmoena & Angela Parenti, 2017. "Volatility in European regions," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 697-720, November.
    4. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2018. "Does EU cohesion policy work? Theory and evidence," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 386-423, March.

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    More about this item

    Keywords

    Markov Matrix; Asymmetric Fluctuations; Output Com-position; Size Effect; Spatial Dependence.;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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