The authors study the empirical, cross-country relationship between macroeconomic volatility and long-run economic growth. They address four central questions: 1) Does the volatility-growth link depend on country and policy characteristics, such as the level of development or trade openness? 2)...

Hnatkovska and Loayza study the empirical, cross-country relationship between macroeconomic volatility and long-run economic growth. They address four central questions:- Does the volatility-growth link depend on country and policy characteristics, such as the level of development or trade...

In this paper the authors study the economic evolution between 1960 and 1995 of two states in India - Maharashtra and West Bengal. In 1960, West Bengal's per capita income exceeded that of Maharashtra. By 1995, it had fallen to just 69 percent of Maharashtra's per capita income. The authors...