This paper looks at the relationship between output variability and economic growth in Australia using the ARCH-M model. Quarterly data for growth rates of industrial production and of GDP are used for the analyses. However, the growth of GDP does not show any ARCH effects. The variability is...

This paper examines whether “consumer sentiment,” an often neglected variable, explains consumption expenditures for Australia. Since household consumption accounts for more than 60 percent of U.S. GDP and a similar proportion in other developed economies, fluctuations in consumption may...