We investigate the growth volatility-political instability relationship in a power-ARCH framework (for Argentina, 1896-2000). Main finding is that while "informal" political instability (e.g., assassinations) has a direct negative effect on economic growth, "formal" instability has an indirect...

This paper examines the link between inflation, output growth and their respective variabilities. We employ a bivariate GARCH model, which incorporates mean and level effects, to investigate in a unified empirical framework all the possible interactions between the four variables. We show that...