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time-series volatility of productivity are also characterized by greater cross-sectional dispersion in productivity …. Volatility in TFP explains one quarter to one third of cross-country productivity dispersion. We document a similar relationship … between productivity volatility and the dispersion of the marginal revenue product of capital (static capital misallocation …
Persistent link: https://www.econbiz.de/10013122876
the correlation between volatility and investment in a set of developing countries. We uncover a statistically significant … negative correlation between various volatility measures and private investment, even when adding the standard control …. Indeed, public investment spending is positively correlated with some measures of volatility. We also use the new World Bank …
Persistent link: https://www.econbiz.de/10012774961
Governments in emerging markets often behave like a quot;tormented insurer,quot; trying to use non-state-contingent debt instruments to avoid cuts in payments to private agents despite large fluctuations in public revenues. In the data, average public debt-GDP ratios decline as the variability...
Persistent link: https://www.econbiz.de/10012778262
volatility, and discusses steps to facilitate the creation of these markets …
Persistent link: https://www.econbiz.de/10012762843
This study uncovers a statistically significant negative correlation between volatility and private investment over the … volatility measures related to domestic policies or to external factors. As the various volatility measures tend to be positively … correlated, we do not claim to identify a unique measure as the dominant source of volatility. Instead, we demonstrate that for a …
Persistent link: https://www.econbiz.de/10012763700
Poor countries are more volatile than rich countries, and we know this volatility impedes their growth. We also know … that commodity price volatility is a key source of those shocks. This paper explores commodity and manufactures price over … the past three centuries to answer three questions: Has commodity price volatility increased over time? The answer is no …
Persistent link: https://www.econbiz.de/10012764828
The latest boom in commodity prices fueled concerns about fiscal policies in commodity-exporting countries, with many claiming that it triggered loose fiscal policy and left no funds for a rainy day. This paper examines the links between fiscal policy and terms-of-trade fluctuations using a...
Persistent link: https://www.econbiz.de/10013147365
This paper studies the impact of aid volatility in a two-period model where production may occur with either a … for the modern technology to be used. The possibility of a poverty trap induced by high aid volatility is first examined … form of a first-period contingency fund) financed through taxation. An increase in aid volatility is shown to raise the …
Persistent link: https://www.econbiz.de/10012753834
Using a sample of 110 developed and developing countries for the period 1990-2004 we analyze the empirical characteristics of systemic sudden stops (3S) in capital flows --understood as large and largely unexpected capital account contractions that occur in periods of systemic turmoil -- and the...
Persistent link: https://www.econbiz.de/10013230824
This paper documents large cross-country differences in the long run volatility of the real exchange rate. In … exchange rate in industrial countries. The paper tests whether this difference in volatility can be explained by the fact that … the difference in RER volatility between developing and industrial countries. Results from ARCH estimations confirm that …
Persistent link: https://www.econbiz.de/10013227521