This paper argues that studying the effect of financial development and shocks on aggregate growth volatility will not … be informative because they affect growth volatility through its different components. Volatility declines either a … terms of volatility of shocks experienced, the GDP growth spectrum of one economy will lie proportionately below that of …

spurs economic growth, horizontal innovation creates new industry sectors, and thus enhances industry diversification …This paper theoretically studies the role of the financial system in promoting macroeconomic stability and growth. It … also explains endogenously the development of the financial system as part of the growth process. The productive sector …

excess consumption volatility differences across countries in a dynamic stochastic general equilibrium (DSGE) framework. I … find that financial development levels have no role in explaining excess consumption volatilities. Instead, the volatility … of the financial sector plays the determinative role. The model matches the data, finding excess consumption volatility …

More financially developed countries show lower volatility of industrial output. Volatility is particularly reduced in … industries that are more financially dependent. Most of the reduction is in idiosyncratic volatility. Systematic volatility is …

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 …

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 …

distinctive features, including exceptionally high average return and volatility. Its correlation with other assets is remarkably … low. Spanning tests confirm that Bitcoin investment offers significant diversification benefits. We show that the …