volatility as a two-equation system, and find that higher levels of democracy and diversification lower volatility, whereas … volatility itself reduces growth. Muslim countries instrument for democracy, and measures of diversification identify volatility …. In contrast to the lack of consensus on the democracy-growth relationship, the democracy-stability link is robust. Rather …

theory of development consistent with these three facts. I show that even when total factor productivity (TFP) growth and …

democracy. In addition, public deficit volatility tends to be magnified for small countries, in the outcome of hyper …