The Effect of Recessions on the Relationship between Output Variability and Growth

Ólan Henry and Nilss Olekalns ()

No 745, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: This paper investigates the relationship between output volatility and growth using post-war real GDP data for the United States. We expand on recent research by Beaudry and Koop (1993) documenting the asymmetric effect of recessions on output growth. The results presented in this paper suggest that output volatility is highest when the economy is contracting. While we find that the economy expands most rapidly following a recession, this expansion is offset by the negative impact of output uncertainty.

Keywords: ECONOMIC RECESSION; ECONOMIC GROWTH; PRODUCTION (search for similar items in EconPapers)
JEL-codes: E20 E23 H70 O40 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2000
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Citations: View citations in EconPapers (12)

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Journal Article: The Effect of Recessions on the Relationship between Output Variability and Growth (2002)
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