The paper investigates asymmetry in the allocation of aggregate demand shocks between real output growth and price … output growth, on average, over time. The analysis highlights the benefits of eliminating structural rigidities responsible …

along with output growth persistence by including a human capital investment sector and a variable physical capital … utilization rate. Strong internal "amplication" results from an economy-wide productivity shock across goods and human capital … investment sectors that has variances 10,000 fold smaller than in the standard RBC TFP shock. Simulated moments are compared to …

times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously … austerity shock, the debt ratio initially declines and then returns to its pre-shock path. Yet, the effect is not statistically … significant. In a weak economic environment, the likelihood of a self-defeating austerity shock is much higher than in normal …

document growth synchronization across a diverse group of 185 countries covering 7 regions, and pay particular attention to the … period around the global financial crisis. A dynamic factor model is used to decompose each country's growth into … and widespread effects on growth, with more diversity in growth experiences in the early part of the recovery. In a …

This paper develops a new index which provides early warning signals of a growth crisis in the event of large external … index. The results show that vulnerabilities to a growth crisis in low-income countries declined significantly from their …

divergence and lower long-run growth, whereas we find absolute convergence in expansions. The output costs of political and … financial crises are permanent on average, and long-term growth is negatively linked to volatility. These results also imply … that panel data studies can help identify the sources of growth and that economic models should be capable of explaining …

episodes of growth accelerations and reversals. In this paper we study the role of domestic policies and other structural … attributes in amplifying or mitigating the effect that shifts in external conditions have on growth patterns in emerging market … and developing economies over the past five decades. We find that these economies can enhance the growth impulse from …

sector development acts as a shock-absorber in poor countries, dampening the transmission of terms of trade shocks to growth … policy attention on strengthening growth resilience. With low-income countries (LICs) being the most vulnerable to large and … volatility. Expanding the sample to 121 developing countries confirms this result, although this role of shock-absorber fades …