01727cas a2200253 a 4500 AALejournalIMF003678 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861662 1018-5941 BD-DhAAL BD-DhAAL Saxena, Sweta. Growth Dynamics : The Myth of Economic Recovery / Sweta Saxena, Valerie Cerra. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (43 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using panel data for a large number of countries, we find that economic contractions are not followed by offsetting fast recoveries. Trend output lost is not regained, on average. Wars, crises, and other negative shocks lead to absolute divergence and lower long-run growth, whereas we find absolute convergence in expansions. The output costs of political and financial crises are permanent on average and long-term growth is negatively linked to volatility. These results also imply that panel data studies can help identify the sources of growth and that economic models should be capable of explaining growth and fluctuations within the same framework. Mode of access: Internet Cerra, Valerie. IMF Working Papers; Working Paper ; No. 2005/147 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/147/001.2005.issue-147-en.xml IMF e-Library