I must be slipping.
I was reading through the archives and I will admit, I don't get around to reading all the posts. It seems an anonymous economist was kind enough to send countering data to my post that the more volatile a country's economic growth, the higher it is, whereas I contested the other way around. Since my primary concern is the truth and am always willing to be convinced otherwise as long as the data warrants it, just wanted to make sure this error has been corrected and duly noted.
Here is the study;
http://ideas.repec.org/a/aea/aecrev/v85y1995i5p1138-51.html
that being said it covers 90 some countries, where as my stats only covered the OECD countries (32 of them that had the data available). Also the study is 11 years old, so the relationship could have changed, but I'll just assume I am in error.
1 comment:
It makes sense, the less regulated an economy is the more likely it is to be more volatile. If the government strictly controls the economy it doesn't move as much (of course at the expense of long term growth).
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