The decline in volatility of US GDP growth
The decline in volatility of US Gross Domestic Product (GDP) growth is a well-known stylized fact of post WWII macroeconomic data. Economists call this observation the Great Moderation. This article contributes to the discussion whether the drop in GDP volatility was a one-time break or a trend decrease (Blanchard and Simon, 2001; Fang and Miller, 2007). We provide evidence for a nonlinear time trend in the volatility of GDP growth and give support for the hypothesis that the 1970s were special in the sense of Blanchard and Simon (2001).
Year of publication: |
2010
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Authors: | Burren, Daniel ; Neusser, Klaus |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 17.2010, 16, p. 1625-1631
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Publisher: |
Taylor & Francis Journals |
Saved in:
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