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dc.contributor.authorLasselle, Laurence
dc.contributor.authorAloi, Marta
dc.contributor.authorMcMillan, David G.
dc.coverage.spatial23 p.en
dc.identifier.citationSchool of Economics and Finance discussion paper series ; 0013en
dc.descriptionPreviously in the University eprints HAIRST pilot service at
dc.description.abstractFatás (2000) argues that in a cross-section analysis of countries there exists a positive correlation between long-term growth rates and the persistence of output fluctuations. The current paper extends this line of research by examining manufacturing sectors of an economy which can be characterised by two levels of technology; a low level and a high level. Analysis of the data reveals a positive correlation between long-term growth rates and the persistence of output fluctuations in ‘high-tech’ sectors. This empirical analysis is further supported by reformulating the model of Matsuyama (1999b) in a stochastic environment. Within this framework the model is able to capture the two main theories of growth, namely; the Solow model and the Romer model. The stochastic nature of the long run output trend is endogenous and based on technological shocks. Despite the cyclical nature of the shocks we are able to show that output fluctuations are more persistent in ‘high-tech’ sectors.en
dc.format.extent85360 bytes
dc.publisherSchool of Economics and Finance, University of St Andrewsen
dc.subjectEndogenous fluctuationsen
dc.subjectStochastic trendsen
dc.titleOn the persistence of output fluctuations in high technology sectorsen
dc.typeWorking or discussion paperen
dc.publicationstatusNot publisheden
dc.statusNon peer revieweden

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