Based on empirical data, a two-equation game-type corruption reaction function model was developed. A "data to model" approach was used rather than the usual a priori approach. The general hypothesis tested was the "monkey see, monkey do" principle. The latest data on corruption among developing...

Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks. As in endogenous growth models,...

We compare business cycle fluctuations in Sub-Saharan African (SSA) countries vis-a-vis the rest of the world. Our main results are as follows: (i) African economies stand out by their macroeconomic volatility, which is is reflected in the volatility of output and other macro variables; (ii)...