Quotation Zagler, Martin. 2017. Empirical evidence on growth and business cycles. Empirica 44 (3), 547-566.




This paper empirically investigates the relationship between long-run economic growth and output volatility for the time series experience of 25 OECD countries between the years 1960 and 2013. Given the low number of observations, we reject, based on Monte Carlo simulations, the obvious choice of Garch estimation, and instead propose a pooled OLS estimator between a filtered GDP series that eliminates the cyclicality and the fluctuations around this trend. We find strong empirical evidence for a positive relationship between output variability and economic growth. This relationship seems to confirm theoretical literature which proposes such a positive relation.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Empirica
Citation Index SSCI
Language English
Title Empirical evidence on growth and business cycles
Volume 44
Number 3
Year 2017
Page from 547
Page to 566
Reviewed? Y
URL http://link.springer.com/article/10.1007/s10663-016-9336-4
DOI http://dx.doi.org/10.1007/s10663-016-9336-4
JEL E32; O47


Zagler, Martin (Details)
Research Institute for International Taxation FI (Details)
Department of Economics (Crespo Cuaresma) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5341 Economic policy (Details)
5343 Economic theory (Details)
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