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

Projektbeginn: 01.05.2011
Projektende: 31.12.2016

Prof. Dr. Jarko Fidrmuc, Dr. Markus Eller, Dr. Zuzana Fungáčová

Zeppelin University Friedrichshafen
Zeppelin-Lehrstuhl für Internationale Wirtschaftstheorie & -politik (eingerichtet 05 / 2011)

Am Seemooser Horn 20
88045 Friedrichshafen

Telefon: +49 7541 6009-1241
Fax: +49 7541 6009-1299
Email: jarko.fidrmuc@zu.de
http://www.zeppelin-university.de/deutsch/lehrstuehle/internationales_management/internationales_management_profil.php

• eigenfinanziertes Forschungsprojekt

• Fidrmuc, Jarko, Eller, Markus, Fungacova, Zuzana: Fiscal Policy and Regional Output Volatility: Evidence from Russia, Regional Studies, 2016; Jg. 50 (11): 1849-1862 (download: https://ideas.repec.org/p/hhs/bofitp/2013_013.html) .