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Volatility and growth: a not so straightforward relationship

Research output: Contribution to journalArticlepeer-review

Conflicting theoretical models and diverse empirical evidence characterize research analysing the relationship between business cycle volatility and economic growth. While the average reported effect of volatility on growth is negative, the empirical estimates vary substantially across studies. We identify the factors that explain this heterogeneity in estimates by conducting a meta-analysis. Our evidence suggests that researchers’ choices regarding the measure of volatility, the control set of the estimated equation, the estimation methods, and the data characteristics can all explain the differences in the reported estimates. Finally, the literature is found to be free of publication bias.
Original languageEnglish
Article number0
Pages (from-to)874-907
Number of pages34
JournalOxford Economic Papers
Issue number4
Early online date5 Dec 2018
Publication statusPublished - 1 Oct 2019


  • Volatility-growth_post_print_version

    Rights statement: This is a pre-copyedited, author-produced version of an article accepted for publication in Oxford Economic Papers following peer review. The version of record is available online at: Dimitrios Bakas, Georgios Chortareas, Georgios Magkonis; Volatility and growth: a not so straightforward relationship, Oxford Economic Papers, gpy065,

    Accepted author manuscript (Post-print), 1.19 MB, PDF document

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