An Empirical Analysis of Growth Volatility: A Markov Chain Approach
Davide Fiaschi and
Andrea Lavezzi
Chapter 18 in New Tools of Economic Dynamics, 2005, pp 319-334 from Springer
Abstract:
Summary This paper studies the determinants of growth rate volatility, focusing on the effect of level of GDP, structural change and the size of economy. First we provide a graphical analysis based on nonparametric techniques, then a quantitative analysis which follows the distribution dynamics approach. Growth volatility appears to (i) decrease with per capita GDP, (ii) increase with the share of the agricultural sector on GDP and, (iii) decrease with the size of the economy, measured by a combination of total GDP and trade openness. However, we show that the explanatory power of per capita GDP tends to vanish when we control for the size of the economy.
Keywords: growth volatility; Markov transition matrix; structural change; nonparametric methods (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (7)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:spr:lnechp:978-3-540-28444-4_18
Ordering information: This item can be ordered from
http://www.springer.com/9783540284444
DOI: 10.1007/3-540-28444-3_18
Access Statistics for this chapter
More chapters in Lecture Notes in Economics and Mathematical Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().