ZEPPELIN Chair of International Economics
Determinants of Output Volatility: Evidence from Russian Regions
Emerging markets tend to experience higher output volatility in comparison to developed economies. Taking into account this difference and the fact that output volatility affects in general poor households more strongly than rich ones, output stabilization is an important issue in these countries. Moreover, higher output volatility is shown to be connected to lower private investment (Aizenman and Marion, 1999) and countries with higher output volatility are also found to have lower long-run economic growth (Ramey and Ramey, 1995; Imbs, 2007; Barrell et al., 2009; Badinger, 2010) . Therefore, analyzing the factors that aggravate or dampen output volatility has crucial policy implications.
Given a lack of empirical evidence explaining output volatility in emerging markets, this paper investigates the determinants of business cycle volatility in the Russian regions. Russia is a large federation that can be viewed as a collection of local economies while output volatility still varies satisfactorily among regions. Besides, the Russian economy has often been strongly affected by economic and financial crises
from 01.05.2011 through 31.12.2016
Prof. Dr. Jarko Fidrmuc
- Fidrmuc, Jarko / Eller, Markus / Fungacova, Zuzana: Fiscal Policy and Regional Output Volatility: Evidence from Russia, Regional Studies, 2016, Jg. 50 (11): 1849 - 1862