Volume 7 (2012)
Most Downloaded Articles
- Excessive Ambitions by Elster, Jon
- Comment on "Implementing a Macroprudential Framework: Blending Boldness and Realism" (by Claudio Borio) by Calomiris, Charles W
- Animal Spirits Revisited by Dow, Alexander and Dow, Sheila C.
- Obliquity by Kay, John
- Capital Markets and Financial Politics: Preferences and Institutions by Roe, Mark J.
Interaction Effects in the Relationship Between Growth and Finance
Citation Information: Capitalism and Society. Volume 1, Issue 1, Pages –, ISSN (Online) 1932-0213, DOI: 10.2202/1932-0213.1003, May 2006
- Published Online:
This paper analyzes how interacting financial development with initial income, macroeconomic volatility and policy variables, can improve our understanding of convergence and divergence across countries, and also restore the significance of correlations between growth and volatility and therefore between growth and macropolicy, even when controlling for country fixed effects or when eliminating countries with extreme policies or bad institutions.