Output variabifity and economic growth

The case of Australia

Joseph Macri*, Dipendra Sinha

*Corresponding author for this work

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

This paper looks at the relationship between output variability and economic growth in Australia using the ARCH-M model. Quarterly data for growth rates of industrial production and of GDP are used for the analyses. However, the growth of GDP does not show any ARCH effects. The variability is found to be significantly negatively related to the growth rate of industrial production. Unlike Caporale and McKiernan (1998), our empirical results do not support Black's (1987) hypothesis, which is that there is a positive relationship between output variability and economic growth. Our results support the Keynesian position.

Original languageEnglish
Pages (from-to)275-282
Number of pages8
JournalJournal of Economics and Finance
Volume24
Issue number3
Publication statusPublished - Sep 2000

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