This paper investigates the effect of output volatility and the great moderation on growth in a model that simultaneously accounts for cross-country interactions, structural breaks and heterogeneous effects. This is done by augmenting the univariate GARCH-M model of growth for each G7 country...

This paper investigates the effect of output volatility and the great moderation on growth in a model that simultaneously accounts for cross-country interactions, structural breaks and heterogeneous effects. This is done by augmenting the univariate GARCH-M model of growth for each G7 country...

This paper examines growth forecasts of models that allow for crosscountry interactions and/or a time-varying variance plus feedback from volatility to growth. Allowing for these issues is done by augmenting an autoregressive model with cross-country weighted averages of growth and/or the...