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 … spending shocks, preference shocks) on aggregate output and investment, and why this volatility-reducing effect diminishes with …

This paper investigates whether volatility of financial development plays a role in determining industrial growth … volatility. Three key findings emerge. First, overwhelming evidence supports the view that more volatile financial development … raises the industrial volatility in sectors that rely more on external liquidity. Second, the harmful effect of financial …

Most traditional explanations for the decreasing aggregate output volatility - so-called "Great Moderation" - fail to … accommodate, or even directly contradict, another aspect of empirical data: the average sales volatility for publicly-traded US … volatility divergence. Firms in the modern economy have been investing heavily in intangible and organizational assets, such as R …

paper offers a solution to this disagreement, suggesting that volatility carries a positive direct effect, but also a … volatility is then ambiguous. The paper reveals the underlying endogeneity of government size in a balanced panel of 95 countries … increase of volatility lowers growth by up to 0.57 percentage points in a democracy, but raises growth by 1.74 percentage …