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Business cycle volatility and country zize :evidence for a sample of OECD countries

Author

Listed:
  • Davide Furceri

    (University of Palermo)

  • Georgios Karras

    (Uniersity of Illinois at Chicago)

Abstract

The main purpose of this paper is to investigate the relationship between business cycle volatility and country size using quarterly data for a sample of OECD countries over 1960-2000. The results suggest very strongly that the relationship between country size and business cycle volatility is negative and statistically significant. This finding is very robust, suggesting that country size does matter, at least for the severity of cyclical fluctuations.

Suggested Citation

  • Davide Furceri & Georgios Karras, 2008. "Business cycle volatility and country zize :evidence for a sample of OECD countries," Economics Bulletin, AccessEcon, vol. 5(3), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07e00006
    as

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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume5/EB-07E00006A.pdf
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    References listed on IDEAS

    as
    1. Ramey, Garey & Ramey, Valerie A, 1995. "Cross-Country Evidence on the Link between Volatility and Growth," American Economic Review, American Economic Association, vol. 85(5), pages 1138-1151, December.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    3. Charles I. Jones, 1999. "Growth: With or Without Scale Effects?," American Economic Review, American Economic Association, vol. 89(2), pages 139-144, May.
    4. Furceri, Davide & Karras, Georgios, 2007. "Country size and business cycle volatility: Scale really matters," Journal of the Japanese and International Economies, Elsevier, vol. 21(4), pages 424-434, December.
    5. Karras, Georgios, 2006. "Trade Openness, Economic Size, and Macroeconomic Volatility: Theory and Empirical Evidence," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 254-272.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Davide Furceri, 2009. "Fiscal Convergence, Business Cycle Volatility, and Growth," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 615-630, August.
    2. Davide fiaschi & Lisa Gianmoena & Angela Parenti, 2013. "The Determinants of Growth Rate Volatility in European Regions," Discussion Papers 2013/170, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Sandrine Levasseur, 2011. "Production under foreign ownership and domestic volatility: an empirical investigation at the sector level," Working Papers hal-01069476, HAL.
    4. Furceri, Davide & Poplawski Ribeiro, Marcos, 2008. "Government spending volatility and the size of nations," Working Paper Series 924, European Central Bank.
    5. Kazuto Masuda, 2010. "Small Benefit from Country Size," Economics Bulletin, AccessEcon, vol. 30(1), pages 67-72.
    6. Angelos VOULDIS & Panayotis MICHAELIDES & John MILIOS, 2008. "Do Technology Shocks affect Output and Profitability over the Business Cycle in Greece (1960-2008)?," EcoMod2008 23800152, EcoMod.
    7. Irene Brunetti & Davide fiaschi & Lisa Gianmoena, 2013. "An Index of Growth Rate Volatility: Methodology and an Application to European Regions," Discussion Papers 2013/169, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Furceri, Davide & Sacchi, Agnese & Salotti, Simone, 2014. "Can fiscal decentralization alleviate government consumption volatility?," MPRA Paper 54513, University Library of Munich, Germany.
    9. Bekiros Stelios & Nguyen Duc Khuong & Uddin Gazi Salah & Sjö Bo, 2015. "Business cycle (de)synchronization in the aftermath of the global financial crisis: implications for the Euro area," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 19(5), pages 609-624, December.
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    More about this item

    Keywords

    Country Size;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • F0 - International Economics - - General

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