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Volatility and Growth

Philippe Aghion and Abhijit Banerjee

Abstract

It has long been recognized that productivity growth and the business cycle are closely interrelated. Yet, until recently, the two phenomena have been investigated separately in the economics literature. This book provides the first consistent attempt to analyze the effects of macroeconomic volatility on productivity growth, and also the reverse causality from growth to business cycles. It shows that by looking at the economy through the lens of private entrepreneurs, who invest under credit constraints, one can go some way towards explaining persistent macroeconomic volatility and the effects ... More

Keywords: macroeconomic volatility, productivity, business cycles, credit constraints, financial development, pecuniary externalities

Bibliographic Information

Print publication date: 2005 Print ISBN-13: 9780199248612
Published to Oxford Scholarship Online: January 2007 DOI:10.1093/acprof:oso/9780199248612.001.0001

Authors

Affiliations are at time of print publication.

Philippe Aghion, author
Robert C. Waggoner Professor of Economics, Harvard University
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Abhijit Banerjee, author
Ford Foundation International Professor of Economics and Director Poverty Action Lab, MIT
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