Institutional Causes of Macroeconomic Volatility

Institutional Causes of Macroeconomic Volatility
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Total Pages : 0
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ISBN-10 : OCLC:1376531318
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Book Synopsis Institutional Causes of Macroeconomic Volatility by : Levon Barseghyan

Download or read book Institutional Causes of Macroeconomic Volatility written by Levon Barseghyan and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the relation between the quality of institutions and macroeconomic volatility. Using instrumental variable regressions, we show that higher barriers to entry lead to higher volatility. In particular, a one standard deviation increase in entry costs increases the standard deviation of output growth by roughly 40% of its average value in our sample. To the contrary, property rights protection has no statistically significant effect on volatility.


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