Shock Persistence in Output and the Role of Stochastic Population Growth

Mae'r cynnwys hwn ar gael yn Saesneg yn unig.

This paper illustrates both analytically and empirically that stochastic long-memory in economic growth arises due to the presence of a long-memory in population growth. Specifically, we show that the long-run conditional mean and variances of economic growth are functions of stochastic long-memory in demographic system. This is well-supported by an empirical example.