Growth and Risk : Methodology and Micro Evidence

  title={Growth and Risk : Methodology and Micro Evidence},
  author={Chris Tm Elbers and Jan Willem Gunning and Bill H. Kinsey},
There has been a revival of interest in the e¤ect of risk on economic growth. We quantify both ex ante and ex post e¤ects of risk using a stochastic version of the Ramsey model. We develop a simulation-based econometric methodology which allows us to estimate the model in the structural form suggested by theory. The methodology is applied to micro data from… CONTINUE READING