Date: 2007
Type: Working Paper
Empirical Evidence on Growth and Volatility
Working Paper, EUI RSCAS, 2007/22
STASTNY, Michael, ZAGLER, Martin, Empirical Evidence on Growth and Volatility, EUI RSCAS, 2007/22 - https://hdl.handle.net/1814/7085
Retrieved from Cadmus, EUI Research Repository
This paper empirically investigates the relationship between long-run economic growth and output
volatility. There is an emerging theoretical literature on the topic which is inconclusive on the size and
direction of the relationship. We analyze this relationship empirically for the time series experience of
21 OECD countries between the years 1961 and 2005. After applying a pooled OLS estimator and a
series of robustness checks we conclude that there is strong empirical evidence for a positive
relationship between output variability and economic growth.
Cadmus permanent link: https://hdl.handle.net/1814/7085
ISSN: 1028-3625
Series/Number: EUI RSCAS; 2007/22
Keyword(s): Growth Volatility Cycles Innovation E32 O33 O47