This study evaluates structural changes over time in the cross-country relationship between growth and volatility. Using a GMM 2SLS method to control for endogenous variables, and a time-series based rolling window estimation procedure, this study adds to the current literature in two...

The existing literature argues that both higher levels of political and economic development can dampen real GDP growth volatility. The problem, however, is that both forms of development are thought to be highly correlated. Using a dataset of 94 countries, we address this problem and find that...