Growth and Volatility
Jean Imbs ()
No 06-09, Swiss Finance Institute Research Paper Series from Swiss Finance Institute
Growth and volatility correlate negatively across countries, but positively across sectors. Analytically, whether or not sectoral growth and volatility are correlated positively is irrelevant in the aggregate. Cross-country estimates identify the detrimental e¤ects of macroeconomic volatility on growth, but they cannot be used to dismiss theories implying a positive growth-volatility coefficient, which appear to hold in sectoral data. In particular, volatile sectors command high investment rates, as they would in a mean-variance framework.
Keywords: Sectors; Growth; Volatility (search for similar items in EconPapers)
JEL-codes: E32 O40 (search for similar items in EconPapers)
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Journal Article: Growth and volatility (2007)
Working Paper: Growth and Volatility (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp0609
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