1. Volatility in European regions.
- Author
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Brunetti, Irene, Fiaschi, Davide, Gianmoena, Lisa, and Parenti, Angela
- Subjects
- *
PER capita , *GROSS domestic product , *MARKET volatility , *MARKOV processes , *LABOR market - Abstract
This paper examines the growth rate volatility of European regions' per capita GDP from 1992 to 2008. We measure the regional volatility using a new methodology based on Markov matrices, and investigate its main determinants. Volatility displays a geographical pattern and a significant spatial dependence. Output composition appears one of the main drivers of volatility; among the other determinants we find a negative impact of the size of regional economies and of labour market flexibility, and a positive impact of sectoral concentration, financialization of the economy, and, occasionally, of participation in EMU. [ABSTRACT FROM AUTHOR]
- Published
- 2017
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