Mauro, Paolo.

Output Drops and the Shocks That Matter Paolo Mauro. [electronic resource] / Paolo Mauro. - Washington, D.C. : International Monetary Fund, 2006. - 1 online resource (43 p.) - IMF Working Papers; Working Paper ; No. 06/172 . - IMF Working Papers; Working Paper ; No. 06/172 .

Output drops are usually associated with major disruption for the residents of affected countries, both directly and often through ensuing, prolonged growth slowdowns. Using a century of data, we document that output drops are more frequent in countries at a lower stage of economic development. We then turn to a more in-depth analysis of the post-1970 era, examining output drops in a large panel of countries, and systematically relating them to a variety of shocks. We compute the expected cost of each type of shock as a function of the shock's frequency, the likelihood that the shock will be associated with a drop in output, and the size of the output drop. The largest costs are associated with external financial shocks (notably, sudden stops in financial flows) for emerging markets, and with real external shocks (in particular, terms-of-trade shocks) for developing countries.

1451864329 : 15.00 USD

1018-5941

10.5089/9781451864328.001 doi


Comparative Studies of Countries
Crises
Currency Crises
Debt Crises
Economic Growth and Aggregate Productivity: General
Economic Growth of Open Economies


Chile
Comoros
Niger
Switzerland
United Arab Emirates

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