Document Type

Article

Publication Date

1-1998

Publication Source

Southern Economic Journal

Abstract

We estimate an ARCH-M model to analyze the relationship between the conditional standard deviation of real gross national product (GNP) and its growth rate for the period 1871-1993. We find that variability significantly increases output growth rates. In addition, impulse response functions show that the effect of variability on growth rates is dynamic. These results provide evidence in favor of Black's (1987) business cycle hypothesis.

Inclusive pages

765-771

ISBN/ISSN

0038-4038

Document Version

Published Version

Comments

Permission documentation is on file.

Publisher

Southern Economic Association

Place of Publication

Chattanooga, TN

Volume

64

Peer Reviewed

yes

Issue

3

Link to published version

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