This paper shows that tracking error volatility (TEV) is characterized by reversion toward the mean. Mutual funds with …

moderation of output volatility compared to the well-known break during the mid-1980s. The period of analysis runs from 1962Q2 to … unconditional volatility and procedures of structural break detection (Inclan–Tiao test and autoregressive conditional …

, translate into more microeconomic stability. While microeconomic volatility can reflect growth-generating processes, such as … creative destruction and re-allocation of resources, consumption growth volatility weighs on households’ welfare. This study …The decline in macroeconomic volatility from the 1980s to the onset of the Great Recession did not, in general …

Policy reforms aimed at boosting long-run growth often have side effects – positive or negative – on an economy … reconsideration of the role growth-promoting policies play in shaping the vulnerability and resilience of an economy to macroeconomic … growth – contained in Going for Growth and the Economic Outlook – and attempts to establish whether they underpin …

of volatility, any variable that influences innovation directly affects volatility and growth. This joint endogeneity is … illustrated by working out the effects through which economies with different tax levels differ in their volatility and growth … process. We obtain analytical measures of macro volatility based on cyclical output and on output growth rates for plausible …

This paper finds a negative relationship between the employment share of the service sector and the volatility of … aggregate output in the OECD — after controlling for the level of financial development. This result reflects volatility … sector. I examine the quantitative role of these labor shifts — termed structural transformation — on the volatility of …

Empirical studies showed that firm-level volatility has been increasing but the aggregate volatility has been … financial development leads to a larger firm-level volatility but a lower aggregate volatility. In addition, our model is also … consistent with the observed decline in volatility of private held firms which do not have (or have only limited) access to …

significantly lower aggregate volatility. This relationship is also highly non-linear starting from a low level of financial … development the reduction in aggregate volatility by financial deepening is far more significant than it is when the financial … market is more developed. We build a fully- edged neoclassical growth model with an endogenous financial market of credit …