@techreport{NBERw4959,
 title = "Cross-Country Evidence on the Link Between Volatility and Growth",
 author = "Garey Ramey and Valerie A. Ramey",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4959",
 year = "1994",
 month = "December",
 URL = "http://www.nber.org/papers/w4959",
 abstract = {This paper presents empirical evidence against the standard dichotomy in macroeconomics that separates growth from the volatility of economic fluctuations.  In a sample of 92 countries as well as a sample of OECD countries, we find that countries with higher volatility have lower growth.  The addition of standard control variables strengthens the negative relationship.  We also find that government spending-induced volatility is negatively associated with growth even after controlling for both time- and country-fixed effects.},
}