Decomposing changes in the conditional variance of GDP over time

Shahram Amini, Michele Battisti, Christopher Parmeter

Research output: Contribution to journalArticle

Abstract

A well established fact in the growth empirics literature is the increasing (unconditional) variation in output per capita across countries. We propose a nonparametric decomposition of the conditional variation of output per capita across countries to capture different channels over which the variation might be increasing. We find that OECD countries have experienced diminishing conditional variation while other regions have experienced increasing conditional variation. Our decomposition suggests that most of these changes in the conditional variance of output are due to unobserved factors not accounted for by the traditional growth determinants. In addition to this we show that these factors played very different roles over time and across regions.

Original languageEnglish (US)
Pages (from-to)376-387
Number of pages12
JournalEconomic Modelling
Volume61
DOIs
StatePublished - Feb 1 2017

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Conditional variance
Factors
Decomposition
OECD countries
Empirics

Keywords

  • Conditional variation
  • Generalized Kernel
  • Nonparametric

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Decomposing changes in the conditional variance of GDP over time. / Amini, Shahram; Battisti, Michele; Parmeter, Christopher.

In: Economic Modelling, Vol. 61, 01.02.2017, p. 376-387.

Research output: Contribution to journalArticle

Amini, Shahram ; Battisti, Michele ; Parmeter, Christopher. / Decomposing changes in the conditional variance of GDP over time. In: Economic Modelling. 2017 ; Vol. 61. pp. 376-387.
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