Regional Economy Size and the Growth-Instability Frontier: Evidence from Europe

@article{Chandra2003RegionalES,
  title={Regional Economy Size and the Growth-Instability Frontier: Evidence from Europe},
  author={S. Chandra},
  journal={European Economics eJournal},
  year={2003}
}
  • S. Chandra
  • Published 2003
  • Economics
  • European Economics eJournal
Predictions of the portfolio model of the economy are tested using regional growth data from Europe. It is shown that more aggregated regions of Europe tend to be more economically diverse than more disaggregated regions. Then, using different frontier estimation methods, evidence of a convex growth-instability frontier for aggregated regions is presented. At the most regionally disaggregated level for which there are data, there is weak if any evidence of the frontier. The results suggest that… Expand
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