TY  - JOUR
AU  - Ramey,Garey
AU  - Ramey,Valerie A.
TI  - Cross-Country Evidence on the Link Between Volatility and Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4959
PY  - 1994
Y2  - December 1994
UR  - http://www.nber.org/papers/w4959
L1  - http://www.nber.org/papers/w4959.pdf
N1  - Author contact info:
Garey Ramey
Department of Economics, 0508
University of California, San Diego
La Jolla, CA   92093-0508
Tel: 619/534-5721;  gramey@weber.ucsd.edu
E-Mail: gramey@ucsd.edu

Valerie A. Ramey
Department of Economics, 0508
University of California, San Diego
9500 Gilman Drive
La Jolla, CA 92093-0508
Tel: 858/534-2388
Fax: 858/534-7040
E-Mail: VRAMEY@UCSD.EDU
AB  - 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.
ER  -