Are Economic Growth and the Variability of the Business Cycle Related? Evidence from Five European Countries

Stilianos Fountas and Menelaos Karanasos ()
Additional contact information
Menelaos Karanasos: Department of Economics, National University of Ireland, Galway

No 63, Working Papers from National University of Ireland Galway, Department of Economics

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

Keywords: Output growth; Output growth uncertainity; GARCH. (search for similar items in EconPapers)
JEL-codes: C22 E32 (search for similar items in EconPapers)
Date: 2002, Revised 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.economics.nuig.ie/resrch/paper.php?pid=68 First version, 2002 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
http://www.economics.nuig.ie/resrch/paper.php?pid=68 Revised version, 2002 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: 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 (2008)
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:nig:wpaper:0063

Access Statistics for this paper

More papers in Working Papers from National University of Ireland Galway, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Srinivas Raghavendra ().