. - Financial development ; Growth ; Volatility ; Diversification ; Mean-variance effciency …We study how financial market effciency affects a measure of diversification of output across industrial sectors … and for various levels of disaggregation, we construct a benchmark measure of diversification as the set of allocations of …

We study the effect of financial markets on "optimal" diversification defined in the spirit of mean-variance efficiency … as a pattern of output reallocation across industrial sectors which simultaneously accounts for the sectors' growth …, volatility, and correlations. Our findings imply that financial markets increase substantially the speed with which the observed …

We study how financial market efficiency affects a measure of diversification of output across industrial sectors … and for various levels of disaggregation, we construct a benchmark measure of diversification as the set of allocations of … aggregate output across industrial sectors which minimize the economy's long-term volatility for a given level of long …

The choice of instruments for mitigating economic volatility is a serious consideration for policymakers and important … markets are more effective than conventional economic policies, such as fiscal interventions, in reducing economic volatility …

(1) level and risk dynamics. The latter includes (2) tail risk and crisis probability as well as (3) the Volatility …

We report evidence that the relation between the financial sector share, private savings and growth in the United … between financial development and growth evolves in a stepwise fashion. Theoretical models where financial market extensions …

Oil is perceived as a good diversification tool for stock markets. To fully understand this potential, we propose a new … to competing models. Employing a recently proposed conditional diversification benefits measure that considers higher …-order moments and nonlinear dependence from tail events, we document decreasing benefits from diversification over the past ten …