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Business cycle volatility and country zize :evidence for a sample of OECD countries
University of Palermo
Uniersity of Illinois at Chicago
The main purpose of this paper is to investigate the relationship between business cycle volatility and country size using quarterly data for a sample of OECD countries over 1960-2000. The results suggest very strongly that the relationship between country size and business cycle volatility is negative and statistically significant. This finding is very robust, suggesting that country size does matter, at least for the severity of cyclical fluctuations.
Citation: Furceri, Davide and Georgios Karras, (2008) "Business cycle volatility and country zize :evidence for a sample of OECD countries." Economics Bulletin, Vol. 5, No. 3 pp. 1-7 Submitted: July 17, 2007. Accepted: January 22, 2008. URL: http://economicsbulletin.vanderbilt.edu/2008/volume5/EB-07E00006A.pdf
1. Introduction Countries come in all shapes and sizes, but economic ...