Growth Dynamics : The Myth of Economic Recovery
Author/Editor: Sweta Chaman Saxena, Valerie Cerra
Release Date: © July, 2005
ISBN
: 978-1-45186-166-2
Stock #: WPIEA2005147
English
Stock Status: On back-order
Languages and formats available
English | French | Spanish | Arabic | Russian | Chinese | Portuguese | |
Paperback | Yes |
Description
Using panel data for a large number of countries, we find that economic contractions are not followed by offsetting fast recoveries. Trend output lost is not regained, on average. Wars, crises, and other negative shocks lead to absolute divergence and lower long-run growth, whereas we find absolute convergence in expansions. The output costs of political and financial crises are permanent on average and long-term growth is negatively linked to volatility. These results also imply that panel data studies can help identify the sources of growth and that economic models should be capable of explaining growth and fluctuations within the same framework.
Taxonomy
Business cycles , Economic development
More publications in this series: Working Papers
More publications by: Sweta Chaman Saxena ; Valerie Cerra