Volatility and growth: a not so straightforward relationship

Bakas, D. ORCID: 0000-0003-4771-4505, Chortareas, G. and Magkonis, G., 2017. Volatility and growth: a not so straightforward relationship. Waterloo, Ontario: The Rimini Centre for Economic Analysis.

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Abstract

This paper is motivated by the conflicting theories and empirical evidence regarding the relationship between business cycle volatility and economic growth. The average reported effect of volatility on growth is negative, but the empirical estimates vary substantially across studies. We identify the factors that explain the heterogeneity of the estimates by conducting a meta-analysis. Our evidence suggests that researchers' choices regarding the measure of volatility, the control set of the estimated equation, the estimation methods, and the data characteristics play a significant role in the total outcome. Finally, the literature is found to be free of publication bias.

Item Type: Working paper
Description: RCEA working papers and professional report series: WP 17-12
Creators: Bakas, D., Chortareas, G. and Magkonis, G.
Publisher: The Rimini Centre for Economic Analysis
Place of Publication: Waterloo, Ontario
Date: 2017
Rights: Copyright belongs to the author. Short sections of the text, not exceeding three paragraphs, can be used provided proper acknowledgement is given.
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 20 Mar 2018 16:47
Last Modified: 12 Apr 2018 10:27
URI: http://irep.ntu.ac.uk/id/eprint/33058

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