Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148195
Authors: 
Tang, Sam Hak Kan
Leung, Charles Ka Yui
Year of Publication: 
2016
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 967
Abstract: 
We present cross-country evidence that a country's macroeconomic volatility, measured either by the standard deviation of output growth or the occurrence of trend-growth breaks, is significantly affected by the country's historical variables. In particular, countries with longer histories of state-level political institutions experience less macroeconomic volatility in postwar periods. Robustness checks reveal that the effect of this historical variable on volatility remains significant and substantial after controlling for a host of structural variables investigated in previous studies. We also find that the state history variable is more important in countries with a higher level of macroeconomic volatility.
Subjects: 
Macroeconomic volatility
history of State-level institution
History of agriculture
Technology adoption
Political stability
JEL: 
O10
O33
O43
Document Type: 
Working Paper

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