Political institutions and economic volatility

European Journal of Political Economy

Volumn 25, Issue 3, 2009, Pages 311-326

  Klomp, Jeroen ^a   de Haan, Jakob ^a,b  

^a UNIVERSITY OF GRONINGEN   (Netherlands)

^b CESIFO   (Germany)

Author keywords

Dynamic panel model; Economic volatility; Political regime

Indexed keywords

EID: 67651152612     PISSN: 01762680     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejpoleco.2009.02.006     Document Type: Article

References (75)

1. Acemoglu D., Johnson S., Robinson J., and Taicharoen Y. Institutional causes, macroeconomic symptoms: volatility, crises and growth. Journal of Monetary Economics 50 (2003) 49-123
2. Acemoglu D., Johnson S., and Robinson J. Institutions as the fundamental cause of long-run growth. In: Aghion P., and Durlauf S. (Eds). Handbook of Economic Growth (2005), Elsevier/North Holland, Amsterdam 386-472
3. Ahmed S., Levin A., and Wilson B. Recent U.S. macroeconomic stability: good policies, good practices, or good luck. Review of Economics and Statistics 86 (2004) 824-832
4. Aizenman J., and Marion N. Policy uncertainty, persistence and growth. NBER Working Paper 3848 (1991)
5. Aizenman J., and Marion N. Macroeconomic uncertainty and private investment. Economics Letters 41 (1993) 207-210
6. Anbarci N., Hill J., and Kirmanoglu H. Institutions and growth volatility. Florida International University Working Paper 0508 (2005)
7. Arellano M., and Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58 (1991) 277-297
8. Arellano M., and Bover O. Another look at the instrumental variable estimation of error-components models. Journal of Econometrics 68 (1995) 29-51
9. Asteriou D., and Price S. Political instability and economic growth: UK time series evidence. Scottish Journal of Political Economy 48 (2001) 383-399
10. Bai J., and Ng S. Determining the number of factors in approximate factor models. Econometrica 70 (2002) 191-121
11. Barrell R., and Gottschalk S. The volatility of the output gap in the G7. National Institute Economic Review 188 (2004) 100-107
12. Barro R., and Lee J. International data on educational attainment: updates and implications. Oxford Economic Papers 53 (2001) 541-563
13. Bastourre D., and Carrera J. Could the exchange rate regime reduce macroeconomic volatility?. Conference paper 32nd Encontro Nacional de Economia, São Paulo, Brazil (2004)
14. Beck T., Clarke G., Groff A., Keefer P., and Walsh P. New tools in comparative political Economy: The database of political institutions. World Bank Economic Review 15 (2001) 165-176
15. Bejan M. Trade openness and output volatility. University of Münich MPRA Paper 2759 (2006)
16. Bekaert G., Campbell H., and Lundblad C. Growth volatility and financial liberalization. Journal of International Money and Finance 25 (2006) 370-403
17. Blanchard O., and Simon J. The long and large decline in U.S. output volatility. Brookings Papers on Economic Activity 1 (2001) 135-173
18. Bleany M., and Fielding D. Exchange rate regimes, inflation and output volatility in developing countries. University of Nottingham, Centre for Research in Economic Development and International Trade Working Paper 99/4 (1999)
19. Blundell R., and Bond S. Initial conditions and moment restrictions in dynamic panel models. Journal of Econometrics 87 (1998) 115-143
20. Brambor T., Clark W., and Golder M. Understanding interaction models: improving empirical analysis. Political Analysis 14 (2006) 63-82
21. Breen R., and Garcia-Peñalosa C. Income inequality and macroeconomic volatility: an empirical investigation. Review of Development Economics 9 (2005) 380-398
22. Buch C., Doepke J., and Pierdzioch C. Financial openness and business cycle volatility. Journal of International Money and Finance 24 (2005) 744-765
23. Bugamelli M., and Paterno F. Output growth volatility and remittances. Bank of Italy Working Paper 673 (2008)
24. Campos N., and Karanasos M. Growth, Volatility and Political Instability: Non-linear Time-series Evidence for Argentina, 1896-2000. IZA Discussion Paper 3087, Bonn (2007)
25. Cecchetti S., Flores-Lagunes A., and Krause S. Assessing the sources of changes in the volatility of real growth. NBER Working Paper 11946, National Bureau of Economic Research, Cambridge MA (2006)
26. CIA. The World Fact Book (2007). https://www.cia.gov/library/publications/the-world-factbook/ https://www.cia.gov/library/publications/the-world-factbook/ (last time assessed 10 June 2008)
27. Databanks International. Cross-national Time-series Data Archive (2005), Binghamton, NY
28. Debrun X., Pisani J., and Sapir A. Government size and output volatility: should we forsake automatic stabilization?. IMF Working paper 08/122 (2008)
29. Denizer C., Iyigun M., and Owen A. Finance and macroeconomic volatility. Contributions to Macroeconomics 2 (2002) 1-30
30. Di Giovanni J., and Levchenko A. Trade openness and volatility. University of Milan Centro Studi Luca D'Angliano Development Studies Working Paper 219 (2006)
31. Dreher A., Sturm J.E., and De Haan J. Does high inflation cause central bankers to lose their job? Evidence based on a new data set. European Journal of Political Economy 24 (2008) 778-787
32. Dutt P., and Mitra D. Inequality and the instability of polity and policy. The Economic Journal 118 (2008) 1285-1314
33. Easterly W., and Kraay A. Small states, small problems? Income, growth and volatility in small states. World Development 28 (2000) 2013-2027
34. Easterly W., Islam R., and Stiglitz J. Explaining Growth Volatility. World Bank Working Paper 04/13 (2000)
35. Fatás A., and Mihov I. Government size and automatic stabilizers: international and intranational evidence. Journal of International Economics 55 (2001) 3-28
36. Flood R., and Rose A. Fixing exchange rates: a virtual quest for fundamentals. Journal of Monetary Economics 36 (1995) 3-37
37. Gilbert P., and Meijer E. Time series factor analysis with an application to measuring money. University of Groningen SOM Research Report 05F10 (2005)
38. Glaeser E., La Porta R., Lopes-de-Silanes F., and Shleifer A. Do institutions cause growth?. NBER Working Paper 10568, National Bureau of Economic Research, Cambridge MA (2004)
39. Hakura D. Output volatility and large output drops in emerging market and developing countries. IMF Working Paper 07/114, International Monetary Fund, Washington DC (2007)
40. Hendry D. Econometrics: Alchemy or Science? Essays in Econometric Methodology (1993), Blackwell Publishers, Oxford, U.K.
41. Hnatkovska V., and Loayza. Volatility and growth. World Bank Working Paper WPS3184 (2003), The World Bank, Washington DC
42. Holtz-Eakin D., Newey W., and Rosen H. Estimating vector autoregressions with panel data. Econometrica 56 (1988) 1371-1395
43. IMF. International financial statistics. CD-Rom (2006)
44. Irvine F.O., and Schuh S. Inventory investment and output volatility. International Journal of Production Economics 93-94 (2005) 75-86
45. Iyigun M.F., and Owen A.L. Income inequality, financial development, and macroeconomic fluctuations. The Economic Journal 114 (2004) 352-376
46. Jaggers K., Marshall M., and Gurr T. Polity IV: political regime characteristics and transitions, 1800-2006. Ann Arbor, MI: Inter-university Consortium for Political and Social Research (2006)
47. Jong-A-Pin R. On the measurement of political instability and its impact on economic growth. European Journal of Political Economy 25 (2009) 15-29
48. Karras G., and Song F. Sources of business-cycle volatility: an exploratory study on a sample of OECD countries. Journal of Macroeconomics 18 (1996) 621-637
49. Kent C., Smith K., and Holloway J. Declining output volatility: what role for structural change. Reserve Bank of Australia Research Discussion Paper 2005-08, Sydney NSW (2005)
50. Kose M.A., Prasad E.S., and Terrones M. Financial integration and macroeconomic volatility. IMF Staff Papers 50 (2003) 119-142
51. Koskela E., and Viren M. Government size and output volatility: new international evidence. Department of Economics Discussion Paper 569, University of Helsinki (2003)
52. Levy-Yeyati E., and Sturzenegger F. Classifying exchange rate regimes: deeds vs. words. European Economic Review 49 (2005) 1603-1635
53. Malik A., and Temple J.R.W. The geography of output volatility. CEPR Discussion Papers 5516, London UK (2006)
54. Mankiw N., Romer D., and Weil D. A contribution to the empirics of economic growth. Quarterly Journal of Economics 107 (1992) 407-437
55. McConnell M.M., and Perez-Quiros G. Output fluctuations in the United States: what has changed since the early 1980's?. American Economic Review 90 (2000) 1464-1476
56. Mobarak A. Democracy, volatility and economic development. Review of Economics and Statistics 87 (2005) 348-361
57. Mobarak A. Democracy and Policy Uncertainty (2007), Working Paper, Yale University, New Haven CT
58. North D. Institutions, Institutional Change and Economic Performance (1990), Cambridge University Press, Cambridge, UK
59. Pesaran M.H., and Smith R. Estimating long-run relationships from dynamic heterogeneous panels. Journal of Econometrics 68 (1995) 79-113
60. Pesaran M.H., Shin Y., and Smith R. Pooled mean group estimation of dynamic heterogeneous models. Journal of the American Statistical Association 94 (1999) 621-634
61. Przeworski A., Alvarez M.E., Cheibub J.A., and Limongi F. Democracy and Development: Political Institutions and Well-being in the World, 1950-1990 (2000), Cambridge University Press, Cambridge UK
62. Quinn D.P., and Woolley J.T. Economic growth, equity, and democracy. Conference Paper Annual Meeting of the American Political Science Association, San Francisco (1996)
63. Quinn D.P., and Woolley J.T. Democracy and national economic performance: the preference for stability. American Journal of Political Science 45 (2001) 634-657
64. Ravn M.O., and Uhlig H. On adjusting the Hodrick-Prescott filter for the frequency of observations. The Review of Economics and Statistics 84 (2002) 371-375
65. Rodrik D. Democracy and Economic Performance (1997), Harvard University Working Paper, Cambridge, MA
66. Rodrik D. Where did all the growth go? External shocks, social conflict and growth collapses. Journal of Economic Growth 4 (1999) 385-412
67. Romer C. Changes in business cycles: evidence and explanations. Journal of Economic Perspectives 13 (1999) 23-44
68. Simon J. The decline in Australian output volatility. Reserve Bank Australia Research Discussion Paper 2001-01, Sydney NSW (2001)
69. Stock J., and Watson M. Forecasting using principal components from a large number of predictors. Journal of the American Statistical Association 97 (2002) 1167-1179
70. Svaleryd H., and Vlachos J. Markets for risk and openness to trade: how are they related?. Journal of International Economics 57 (2002) 369-395
71. Tang, H., Groenewold, N., Leung, C., 2008. The link between institutions, technical change and macroeconomic volatility. Journal of Macroeconomics 30, 1520-1549.
72. Walsh C. Central bank independence. Prepared for the New Palgrave Dictionary, December 2005 (2005). http://econ.ucsc.edu/~walshc/ (downloaded from: http://econ.ucsc.edu/~walshc/ (last time assessed 13 December 2006)
73. Wansbeek T., and Meijer E. Measurement Error and Latent Variables in Econometrics (2000), Amsterdam, North Holland
74. World Bank. World Bank Development Indicators 2006. CD-Rom (2006)
75. Yang B. Does democracy lower growth volatility? A dynamic panel analysis. Journal of Macroeconomics 30 (2008) 562-574