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dc.titlePolicy Volatility and Growth
dc.contributor.authorGradstein, Mark
dc.contributor.authorChong, Alberto E.
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2011-02-07T00:00:00
dc.date.issue2006-08-14T00:00:00
dc.description.abstractA growing body of recent macroeconomic evidence suggests that volatility is detrimental to economic growth. The channels through which volatility affects growth, however, are less clear; substantive evidence based on disaggregate data is almost non-existent. This paper offers a framework in which policy volatility has an adverse effect on firms' entry into productive industries, thereby affecting economic growth. Empirical support for this relationship is based on a detailed dataset of thousands of firms from some 80 countries. Additional evidence is provided on the channels through which volatility affects firm growth, showing that institutional obstacles magnify the effect.
dc.identifier.doihttp://dx.doi.org/10.18235/0010868
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Policy-Volatility-and-Growth.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectEconomy
dc.subject.keywordsWP-578
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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