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Institutions and Growth Volatility*

Anbarci, N.; Hill, J.; Kirmanoglu, H.


J. Hill

H. Kirmanoglu


Recently some studies provided evidence that democratic political institutions generate less volatile growth. These studies, however, do not provide any link between democracy and investment volatility. Here, we focus on the specific channel that links individualistic societies and low growth volatility. We test whether investment volatility and consequently growth volatility are lower in individualistic societies. We construct a two‐equation system of investment and income growth volatility, allowing various measures of individualism to influence growth volatility both directly and indirectly. We find that individualism significantly directly and indirectly influences growth volatility negatively.


Anbarci, N., Hill, J., & Kirmanoglu, H. (2011). Institutions and Growth Volatility*. Economic Papers, 30(2), 233-252.

Journal Article Type Article
Online Publication Date May 23, 2011
Publication Date 2011-06
Deposit Date Aug 17, 2018
Journal Economic Papers
Print ISSN 0812-0439
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 30
Issue 2
Pages 233-252
Public URL