An Investigation of Uncertainty’s Welfare Effects in Economy, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
We consider the impact of long-run uncertainty on relative GDP per Capita of an economy and show this effect is negative and significant. We show one standard deviation increase in uncertainty, decreases the economy’s GDP per Capita by 1.3%.In other words uncertainty affects the development of economies in addition to their growth rate. We show the significance of this effect in presence of human capital and physical capital. We consider the impact of uncertainty on relative productivity and show its significant negative impact. We consider the uncertainty impact on GDP per Capita’s time trend and show the effect diminishes over time.Additionally, we investigate the important channels of...
Cataloging briefAn Investigation of Uncertainty’s Welfare Effects in Economy, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
We consider the impact of long-run uncertainty on relative GDP per Capita of an economy and show this effect is negative and significant. We show one standard deviation increase in uncertainty, decreases the economy’s GDP per Capita by 1.3%.In other words uncertainty affects the development of economies in addition to their growth rate. We show the significance of this effect in presence of human capital and physical capital. We consider the impact of uncertainty on relative productivity and show its significant negative impact. We consider the uncertainty impact on GDP per Capita’s time trend and show the effect diminishes over time.Additionally, we investigate the important channels of...
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