CAPITAL MARKET, FREQUENCY OF RECESSION, AND FRACTION OF TIME THE ECONOMY IN RECESSION

Piyapas Tharavanij

No 34-07, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper investigates the relationships of capital markets, frequency of recession, and fraction of time the economy is in recession. The main finding is that frequency of recession is not robustly linked to measures of capital market development. However, the fraction of time the economy spends in recession is significantly related to capital market development, though the marginal effect is small. This implies that countries with more advanced capital markets would tend to spend lower proportion of time in recession. Results are generated using quarterly data of thirty-five countries from 1975 to 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 C35 E32 E44 G00 G21 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... essiontharavanij.pdf (application/pdf)

Related works:
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:2007-34

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 ().