Maslova, IngaOnder, HarunSanghi, Apurva2013-10-022013-10-022013-08https://hdl.handle.net/10986/16011The magnitude and persistence of growth in gross domestic product are topics of intense scrutiny by economists. Although the existing techniques provide a range of tools to study the nature of growth and volatility time series, these usually come with shortcomings, including the need to arbitrarily define acceleration spells, and focus on a particular frequency at a time. This paper explores the application of "wavelet-based" techniques to study the time-varying nature of growth and volatility. These techniques lend themselves to a more robust analysis of short-term and long-term determinants of growth and volatility than the traditional decomposition techniques, as demonstrated on a small sample of countries. In addition to having desirable technical advantages, such as localization in time and frequency and the ability to work with non-stationary series, these techniques also make it possible to accurately decompose the association between growth trajectories of different countries over different time horizons. Such "co-movement" analysis can provide policy makers with important insights on regional integration, growth poles, and how short and long term developments in other countries affect their domestic economy.en-USCC BY 3.0 IGOAMERICAN ECONOMIC ASSOCIATIONAMERICAN ECONOMIC REVIEWAVERAGE GROWTHAVERAGE GROWTH RATEAVERAGE GROWTH RATESBLACK MARKETBLACK MARKET PREMIUMBUSINESS CYCLEBUSINESS CYCLE VOLATILITYBUSINESS CYCLESCAPITA GROWTHCOMMODITYCOMMODITY PRICECOMMODITY PRICESCONSUMPTION GROWTHCORRELATION ANALYSISCORRELATION COEFFICIENTCORRELATIONSCREDIT CONSTRAINTSCROSS COUNTRYCUSTOMS UNIONDATA AVAILABILITYDEBTDEBT CRISISDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT POLICYDOMESTIC ECONOMYECONOMIC ACTIVITIESECONOMIC DECLINEECONOMIC DOWNTURNECONOMIC DOWNTURNSECONOMIC GROWTHECONOMIC MANAGEMENTECONOMIC POLICYECONOMIC REFORMECONOMIC UNIONSECONOMICSESTIMATORSFINANCIAL DATAFLUCTUATIONSFOREIGN CURRENCIESFREE TRADEFUNCTIONAL FORMGROSS DOMESTIC PRODUCTGROWTH LITERATUREGROWTH PERFORMANCEGROWTH PROCESSGROWTH RATESGROWTH RELATIONSHIPHIGH INCOMEHIGH INCOME COUNTRIESIMPACT OF VOLATILITYINCOMEINCOME GROUPINCOMESINTERNATIONAL BUSINESSLINK BETWEEN VOLATILITYLONG RUNLONG-TERM GROWTHLOW INCOMELOW INCOME COUNTRIESLOW INCOME COUNTRYMACROECONOMIC DYNAMICSMARGINAL PROPENSITYMEDIUM TERMMETHODOLOGYMIDDLE INCOMEMONETARY UNIONNEGATIVE EFFECTOUTPUTOUTPUT GROWTHPER CAPITA GROWTHPER CAPITA INCOMEPER CAPITA INCOME LEVELSPOLICY MAKERSPOLICY RESEARCHPOVERTY REDUCTIONPURCHASING POWERPURCHASING POWER PARITYRAPID GROWTHREGIONAL INTEGRATIONRESEARCH WORKING PAPERSRICH COUNTRIESRISK SHARINGSHARP REDUCTIONSIGNIFICANT CORRELATIONSTRUCTURAL BREAKTECHNIQUESTIME SERIES ANALYSISVARIABILITYVOLATILITYwaveletsgrowth accelerationWorld Bank10.1596/1813-9450-6578