Scaling the volatility of GDP growth rates

D. Canning*, L. A N Amaral, Y. Lee, M. Meyer, H. E. Stanley

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

105 Scopus citations

Abstract

The distribution of shocks to GDP growth rates is found to be exponential rather than normal. Their standard deviation scales with GDPβ where β=-0.15±0.03. These macroeconomic results place restrictions on the microeconomic structure of interactions between agents.

Original languageEnglish (US)
Pages (from-to)335-341
Number of pages7
JournalEconomics Letters
Volume60
Issue number3
DOIs
StatePublished - Sep 1 1998

Keywords

  • 040
  • Country Size
  • E30
  • Network Models
  • Real Business Cycles
  • Scale Effects
  • Volatility

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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