Do economies stall?

A 'stalling' economy has been defined as one that experiences a discrete deterioration in economic performance following a decline in its growth rate to below some threshold level. We examine the international evidence for stalling in a panel of 51 economies using two different definitions...

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Published in:Applied economics 2014-12, Vol.46 (35), p.4267-4275
Main Authors: Ho, Wai-Yip Alex, Yetman, James
Format: Article
Language:English
Subjects:
Bootstrap mechanism
Business cycles
Economic growth
Economic performance
Growth rate
Growth rates
Manycountries
Recessions
sieve bootstrap
stall speed
Studies
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description A 'stalling' economy has been defined as one that experiences a discrete deterioration in economic performance following a decline in its growth rate to below some threshold level. We examine the international evidence for stalling in a panel of 51 economies using two different definitions of a stall threshold (time-invariant and related to lagged average growth rates). We find that the evidence for stalling is limited: only 7-12 of the economies in our sample experience statistically significant stalls at the 5% level based on any one definition.
doi_str_mv 10.1080/00036846.2014.955255
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source International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; EBSCO EconLit with Full Text; Taylor and Francis Social Sciences and Humanities Collection
subjects Bootstrap mechanism
Business cycles
Economic growth
Economic performance
Growth rate
Growth rates
Manycountries
Recessions
sieve bootstrap
stall speed
Studies
title Do economies stall?
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