Growth dynamics
Subtitle: the myth of economic recovery
By: by Valerie Cerra and Sweta Chaman Saxena.
Contributors: Saxena, Sweta Chaman.; Bank for International Settlements. Monetary and Economic Dept.
Series: BIS working papers -- no. 226
Publisher: Bank for International Settlements
Published: 2007
Place of publication: Basel, Switzerland
Language: eng
Format: Electronic resource
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.
Notes: Title from PDF file (viewed on June 21, 2007).

"Monetary and Economic Department."

"March 2007."

Includes bibliographical references.

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