Volatility and Growth: A not so straightforward relationship

Dimitrios Bakas, Georgios Chortareas and Georgios Magkonis

Working Paper series from Rimini Centre for Economic Analysis

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.

Keywords: Economic Growth; Volatility; Business Cycles; Meta-Analysis; Bayesian Model Averaging (search for similar items in EconPapers)
JEL-codes: C83 E32 O40 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-fdg and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rcea.org/RePEc/pdf/wp17-12.pdf

Related works:
Journal Article: Volatility and growth: a not so straightforward relationship (2019)
Working Paper: Volatility and Growth: A not so Straightforward Relationship (2018)
Working Paper: Volatility and Growth: A not so straightforward relationship (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:17-12

Access Statistics for this paper

More papers in Working Paper series from Rimini Centre for Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Marco Savioli ().