Publication: Interaction Effects in the Relationship Between Growth and Finance
Date
2006
Authors
Published Version
Journal Title
Journal ISSN
Volume Title
Publisher
Walter de Gruyter GmbH
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Citation
Aghion, Philippe. 2006. “Interaction Effects in the Relationship Between Growth and Finance.” Capitalism and Society 1 (1) (January 22). doi:10.2202/1932-0213.1003.
Research Data
Abstract
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.
Description
Other Available Sources
Keywords
Financial development, convergence, volatility, interaction effects, countercyclical policy
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