Democracy , Diversification , and Growth Reversals

  title={Democracy , Diversification , and Growth Reversals},
  author={David Cuberes and Michal Jerzmanowski},
  • David Cuberes, Michal Jerzmanowski
  • Published 2008
Several studies have documented a negative relationship between democracy and volatility. The latter is usually measured at high frequency – as the standard deviation of annual GDP growth rates. On the other hand, growth researchers have recently focused on the medium term and documented frequent shifts in the trend-growth process within countries. In this paper we aim to connect these two strands of the literature: we ask whether trend-volatility is also lower in more democratic countries. We… CONTINUE READING