Are economic growth and the variability of the business cycle related? Evidence from five European countries

Stilianos Fountas and Menelaos Karanasos

International Economic Journal, 2008, vol. 22, issue 4, 445-459

Abstract: We use a long series of annual data that span over 100 years to examine the relationship between output growth and its uncertainty in five European countries. Using the GARCH methodology to proxy uncertainty, we obtain two important results. First, more uncertainty about output leads to a higher rate of growth in three of the five countries. Second, output growth reduces its uncertainty in all countries except one. Our results are robust to alternative specifications and provide strong support to the recent emphasis by macroeconomists on the joint examination of economic growth and the variability of the business cycle.

Keywords: output growth; output growth uncertainty; GARCH (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/10168730802497478 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Are economic growth and the variability of the business cycle related ? Evidence from five European countries (2008)
Working Paper: Are Economic Growth and the Variability of the Business Cycle Related? Evidence from Five European Countries (2002)
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:taf:intecj:v:22:y:2008:i:4:p:445-459

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RIEJ20

DOI: 10.1080/10168730802497478

Access Statistics for this article

International Economic Journal is currently edited by Jaymin Lee Editor

More articles in International Economic Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().