The temporal interdependence between health expenditure and economic growth has been the focus in a number of recent empirical studies. While some insights have been gained from these studies, the focus has been on national economies, either in developed or developing countries. This paper explores this relationship at the U.S. state-level. The paper contributes to the literature by investigati...

This paper presents new evidence on the persistence of fluctuations in real GNP. Two measures of persistence are estimated non-parametricaFly using post-war quarterly data from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These estimates are compared with Monte Carlo results from various AR(2J processes. For six Out of seven countries, the results indicate t...

— We consider the comovement of economic volatility across multiple countries. Using spatial models with data from 187 countries over the period of 1960–2007, we find a strong spatial comovement of economic volatility. More interestingly, the effect of geographical proximity on economic volatility comovement is strongest during the period of international shocks (1973–86), but almost disappears...

This paper presents new evidence on the persistence of fluctuations in real GNP. Two measures of persistence are estimated non-parametricaFly using post-war quarterly data from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These estimates are compared with Monte Carlo results from various AR(2J processes. For six Out of seven countries, the results indicate t...

The one-sector Solow-Ramsey growth model informs how most modern researchers characterize macroeconomic trends and cycles, and evidence supporting the model’s balanced growth predictions is often cited. This paper shows, however, that the inclusion of recent data leads to the balanced growth predictions being rejected. An alternative balanced growth hypothesis—that the ratio of nominal consumpt...

Asymmetric Information, Bargaining, and Unemployment Fluctuations Author(s): Daron Acemoglu Source: International Economic Review, Vol. 36, No. 4 (Nov., 1995), pp. 1003-1024 Published by: Blackwell Publishing for the Economics Department of the University of Pennsylvania and Institute of Social and Economic Research -Osaka University Stable URL: http://www.jstor.org/stable/2527270 Accessed: 11/...

This paper examines the two-way relationship between inequality and economic fluctuations, and the implications for human development. For years, the dominant paradigm in macroeconomics, which assumed that income distribution did not matter, at least for macroeconomic behavior, ignored inequality—both its role in causing crises and the effect of fluctuations in general, and crises in particular...

Lucas (1987, 2003) estimates that the cost of ‡uctuations is less than 0.1% of consumption. In other words, a social planner would pay no more than 0.1% of (permanent) consumption to eliminate all future business cycle ‡uctuations. The current paper extends Lucas’calculations by studying the costs of ‡uctuations arising from asset bubbles. We estimate two classes of costs: consumption volatilit...

Macroeconomists—especially those studying monetary policy—often view the business cycle as a transitory departure from the smooth evolution of a neoclassical growth model. Important ideas contributed by Friedman, Lucas, and the developers of the sticky-price macro model generate this type of aggregate behavior. But the realbusiness cycle model shows that the neoclassical model implies anything ...