Accounting for variability in the growth rate of income

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 129
Issue: C
Pages: 71-73

Authors (2)

Lambert, Peter J. (not in RePEc) Yitzhaki, Shlomo

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The average of periodic growth rates is a downwardly biased estimator of the rate of growth of a country. The higher the variance of the periodical growth rates, the higher the downward bias. The longer the business cycle, the higher the downward bias. In this short paper, we demonstrate these facts on a number of different levels, from intuitive to quite technical. We suggest that the variability of growth rates be taken into account whenever a long term forecast is prepared.

Technical Details

RePEc Handle
repec:eee:ecolet:v:129:y:2015:i:c:p:71-73
Journal Field
General
Author Count
2
Added to Database
2026-01-29