Volatility, Income Distribution, and Poverty

Laursen, Thomas; Mahajan, Sandeep

doi:10.1017/cbo9780511510755.006

Cited by 46 publications

(27 citation statements)

References 34 publications

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“…(Agenor 2001, Laursen et al 2004, Guillaumont 2006, Guillaumont and Korachais 2006. In most of these macro economic papers, reference is made to 6 the negative effects of shocks on households drawn from a large micro economic literature which emphasizes the direct effects of instability on poverty.…”

Section: The Negative Impact Of Instability Evidenced Both At the Macmentioning

confidence: 99%

When Instability Increases The Effectiveness Of Aid Projects

Guillaumont¹,

Laajaj²

2006

Policy Research Working Papers

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Section: The Negative Impact Of Instability Evidenced Both At the Macmentioning

confidence: 99%

When Instability Increases The Effectiveness Of Aid Projects

Guillaumont¹,

Laajaj²

2006

Policy Research Working Papers

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“…Numerous studies identify its effects on long-run growth (Ramey & Ramey, 1995), welfare (Pallage & Robe, 2003;Barlevy, 2004), as well as inequality and poverty (Gavin & Hausmann, 1998;Laursen & Mahajan, 2005). The question of what are the main determinants of macroeconomic volatility has thus attracted a great deal of attention in the literature.…”

Section: Introductionmentioning

confidence: 99%

Trade Openness and Volatility

Giovanni¹,

Levchenko²

2009

Review of Economics and Statistics

322

196

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This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel data set of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is accompanied by increased specialization. These two forces imply increased aggregate volatility. Third, sectors that are more open to trade are less correlated with the rest of the economy, an effect that acts to reduce overall volatility. The point estimates indicate that each of the three effects has an appreciable impact on aggregate volatility. Added together they imply that the relationship between trade openness and overall volatility is positive and economically significant. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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“…, 2004), and financial constraints and limited access to capital markets, which can limit discretionary policy during economic recessions (Kaminsky, Reinhart and Végh, 2004). If these outcomes result in a procyclical fiscal stance they are likely to amplify economic fluctuations, with adverse consequences, including for the volatility of government revenues (Eichengreen and Hausmann, 2004), poverty levels, especially in developing economies (World Bank, 2000; Laursen and Mahajan, 2005), and long‐term economic growth, by discouraging new investment (Bernanke, 1983), or by encouraging short‐term sub‐optimal investment (Serven, 1998), or by undermining human capital though unemployment (Martin and Rogers, 1997). In addition, if the reaction of fiscal policies to positive and negative cyclical conditions is asymmetric, procyclical fiscal policy can lead to adverse debt dynamics (Balassone and Francese, 2004).…”

Section: Introductionmentioning

confidence: 99%

On the Cyclicality of South African Fiscal Policy

Thornton

2007

South African J Economics

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This paper examines the cyclicality of government revenue, spending and the key fiscal balances in South Africa during 1972-2001. The results suggest that while government revenues were largely acyclical, government spending appears to have been predominantly counter-cyclical, in line with the recommendations of neoclassical analysis. In addition, countercyclical government spending appears to have translated into a countercyclical policy stance overall. This finding contrasts markedly with the results from other empirical studies of South Africa and other emerging market and developing economies, which typically indicate procyclical fiscal policy. Copyright (c) 2007 The Author; Journal compilation (c) Economic Society of South Africa 2007.

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Volatility, Income Distribution, and Poverty

Cited by 46 publications

References 34 publications

When Instability Increases The Effectiveness Of Aid Projects

When Instability Increases The Effectiveness Of Aid Projects

Trade Openness and Volatility

On the Cyclicality of South African Fiscal Policy

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