The link between economic growth and growth volatility
- Authors
- Lin, Shu-Chin; Kim, Dong-Hyeon
- Issue Date
- 2월-2014
- Publisher
- PHYSICA-VERLAG GMBH & CO
- Keywords
- Economic growth; Growth volatility; Simultaneous equations models; Identification through heteroskedasticity
- Citation
- EMPIRICAL ECONOMICS, v.46, no.1, pp.43 - 63
- Indexed
- SSCI
SCOPUS
- Journal Title
- EMPIRICAL ECONOMICS
- Volume
- 46
- Number
- 1
- Start Page
- 43
- End Page
- 63
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/99356
- DOI
- 10.1007/s00181-013-0680-y
- ISSN
- 0377-7332
- Abstract
- This paper investigates the relationship between economic growth and growth volatility through simultaneous equations system. By employing the identification through heteroskedasticity method of Rigobon (Rev Econ Stat 85:777-792, 2003) and using a panel of 158 countries over the period 1960-2010, we find that output volatility is detrimental to economic growth, suggesting that stabilization policies to mitigate short-run economic fluctuations contribute to long-run economic growth. And economic growth accelerates output variability, supporting the feedback effects from growth to the volatility. The evidence is robust to a number of sensitivity tests.
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Collections - College of Life Sciences and Biotechnology > Department of Food and Resource Economics > 1. Journal Articles
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