TY - CHAP
T1 - An empirical analysis of growth volatility: A Markov chain approach
AU - Lavezzi, Andrea Mario
AU - Fiaschi, Davide
AU - Lavezzi, Andrea Mario
PY - 2005
Y1 - 2005
N2 - 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. © 2005 Springer-Verlag Berlin Heidelberg.
AB - 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. © 2005 Springer-Verlag Berlin Heidelberg.
KW - Growth volatility
KW - Markov transition matrix
KW - Nonparametric methods
KW - Structural change
KW - Growth volatility
KW - Markov transition matrix
KW - Nonparametric methods
KW - Structural change
UR - http://hdl.handle.net/10447/31618
M3 - Chapter
SN - 978-3-540-24282-6
T3 - LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS
SP - 319
EP - 334
BT - New Tools of Economic Dynamics
ER -