volatility on emerging market economies has become an important topic of research with the domestic financial intermediation …, first-order effects of volatility on production, employment and welfare. A calibration illustrates that the semi …-elasticity of welfare with respect to volatility is less than -1 for reasonable parameter values (i.e., a one percent increase in …

volatility of aggregate shocks impinging on the domestic economy. The implications of this approach are analyzed in a model with … revenue lost in adverse states of nature. Higher volatility of producers' productivity shocks increases both financial spreads … volatility are non-linear. Higher volatility does not impose any welfare cost for countries characterized by relatively low …

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 …

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 …

This paper shows that volatility induces adverse first order welfare effects in countries excluded from the global … volatility. We identify the parameters determining the magnitude of the loss -- it is proportional to the autocorrelation of … shocks, to volatility (as measured by the standard deviation of shocks), and to the degree of product differentiation (as …

volatility, and external debt difficulties magnify the skewness. We conclude the paper with an assessment of the patterns of …

domestic investment and foreign direct investment (FDI), and the correlation between exchange rate volatility and investment … exchange rate volatility under a flexible exchange rate is shown to depend on the nature of the shocks. If the dominant shocks … correlation between exchange rate volatility and the level of investment …

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 …

choices matter for output volatility and the medium-term level of inflation. Greater monetary independence is associated with … lower output volatility while greater exchange rate stability implies greater output volatility, which can be mitigated if a … inflation rate. We find that trilemma policy configurations and external finances affect output volatility through the …