Recent hikes and fluctuations in global commodity prices in 2007-11 have raised many issues. The present analysis is an attempted advancement to identify appropriate associations to volatile commodity prices by advancing existing analysis of S&P GSCI commodity spot price index is used as a proxy...

This paper attempts a re-examination of the relationship between the output volatility and economic growth using an annual data set for select 67 countries for the period 1978 to 2017 spanning over 40 years. Towards this objective cross section and panel, regressions are estimated for different...

We investigate a real business cycle (RBC) model with financial frictions for a small open economy by estimating the model solved up to the second order. The higher-order approximation more closely approximates the original model than the linear approximation. In this paper, we evaluate the...

This study estimates a financial friction model and three extensions solved up to the third order using a Bayesian approach, and compare the estimated model implications for business cycles in emerging countries. Our empirical results are as follows: First, we find that adding a country premium...

The influential work of Ramey and Ramey (1995) highlighted an empirical relationship that has now come to be regarded as conventional wisdom that output volatility and growth are negatively correlated. We reexamine this relationship in the context of globalization a term typically used to...

This paper treats capital flows as risky growth opportunities for both investing and host countries in a standard mean-variance model. Differing optimal tradeoffs between growth and volatility on both sides of capital flows are examined on the basis of their different attitudes toward...

The influential work of Ramey and Ramey (1995) highlighted an empirical relationship that has now come to be regarded as conventional wisdom - that output volatility and growth are negatively correlated. We reexamine this relationship in the context of globalization - a term typically used to...

I measure the welfare gains from eliminating fluctuations in investment in an emerging economy such as Argentina. The estimated welfare effects are an order of magnitude higher than those for the US and arise with moderate degrees of diminishing returns to investment

This paper considers the linkages between output growth and output volatility for the sample of G7 countries over the period 1958M2-2011M7, thereby paying particular attention to spillovers within and between countries. Using the VAR-based spillover index approach by Diebold and Yilmaz (2012),...