Do economies stall?

Wai-Yip Alex Ho and James Yetman

Applied Economics, 2014, vol. 46, issue 35, 4267-4275

Abstract: A 'stalling' economy has been defined as one that experiences a discrete deterioration in economic performance following a decline in its growth rate to below some threshold level. We examine the international evidence for stalling in a panel of 51 economies using two different definitions of a stall threshold (time-invariant and related to lagged average growth rates). We find that the evidence for stalling is limited: only 7-12 of the economies in our sample experience statistically significant stalls at the 5% level based on any one definition.

Date: 2014
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DOI: 10.1080/00036846.2014.955255

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