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Capital Market and Business Cycle Volatility

  • Tharavanij, Piyapas

This paper investigates cross-country evidence on how capital market affects business cycle volatility. In contrast to the large and growing literature on the impact of finance and growth, empirical work on the relationship between finance and volatility has been relatively scarce. Theoretically, more developed capital market should lead to lower macroeconomic volatility. The major finding is that countries with more developed capital market have smoother economic fluctuations. Results are generated using panel estimation technique with panel data from 44 countries covering the years 1975 through 2004.

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File URL: http://mpra.ub.uni-muenchen.de/4952/1/MPRA_paper_4952.pdf
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File URL: http://mpra.ub.uni-muenchen.de/5188/1/MPRA_paper_5188.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4952.

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Date of creation: 09 Sep 2007
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Handle: RePEc:pra:mprapa:4952
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  35. repec:ner:tilbur:urn:nbn:nl:ui:12-3125520 is not listed on IDEAS
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