CAPITAL MARKET, SEVERITY OF BUSINESS CYCLE, AND PROBABILITY OF AN ECONOMIC DOWNTURN

Piyapas Tharavanij

No 32-07, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper investigates the relationships of capital market, severity of economic contraction, and probability of an economic downturn. The finding supports a theoretical prediction that countries with more advanced capital markets would face less severe business cycle output contraction, and a lower chance of an economic downturn. The results hold even after controlling for other relevant variables, country specific effects, and state dependences. However, the marginal effects are small. Results are generated using panel estimation technique with panel data from 44 countries covering the years 1975 through 2004.

Keywords: business cycle; capital market; financial development; financial structure; panel data; market-based; bank-based (search for similar items in EconPapers)
JEL-codes: C33 C34 C35 E32 E44 G00 G21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... markettharavanij.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.buseco.monash.edu.au/eco/research/papers/2007/3207capitalmarkettharavanij.pdf [301 Moved Permanently]--> https://www.monash.edu/business/ [301 Moved Permanently]--> https://www.monash.edu/business)

Related works:
Working Paper: Capital Market, Severity of Business Cycle, and Probability of Economic Downturn (2007)
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:mos:moswps:2007-32

Ordering information: This working paper can be ordered from
https://www.monash.e ... esearch/publications

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().