Sectoral Allocation, Risk Efficiency and the Great Moderation by Federal Reserve Board

Sectoral Allocation, Risk Efficiency and the Great Moderation

Federal Reserve Board

40 pages missing pub info (view editions)

nonfiction business economics informative medium-paced
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The decline in U.S. real GDP growth volatility after the mid 1980s was an outcome of more risk efficient and more diversified sectoral allocations. Using a portfolio approach, I distinguish between the two determinants of GDP growth volatility: se...

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