The University of Southampton
University of Southampton Institutional Repository

Economic growth under stochastic population and pollution shocks

Economic growth under stochastic population and pollution shocks
Economic growth under stochastic population and pollution shocks
We study dynamics of interactions among economic growth, population, and environmental quality when stochastic shocks in these systems display long-memory property. We make two important contributions. First, we show that the long-memory persistence in economic growth is determined jointly by the convergence speed of shocks in both environmental quality and population. Second, by simulating a modified Solow-Swan economy we demonstrate that the convergence-speed of shocks in these systems significantly affects the long-run growth trajectory of output. Our empirical examination evince that adjustment of output to long-run equilibrium is very slow, thanks to the slowly dissipating population and pollution shocks
1463-6786
314-345
Azomahou, Theophile
a396591c-558d-412a-855c-4dfb429ed2e4
Tapas, Mishra
218ef618-6b3e-471b-a686-15460da145e0
Parhi, Mamata
5e489f1d-9fe0-44b3-8027-bfa3ec6bfbd4
Azomahou, Theophile
a396591c-558d-412a-855c-4dfb429ed2e4
Tapas, Mishra
218ef618-6b3e-471b-a686-15460da145e0
Parhi, Mamata
5e489f1d-9fe0-44b3-8027-bfa3ec6bfbd4

Azomahou, Theophile, Tapas, Mishra and Parhi, Mamata (2015) Economic growth under stochastic population and pollution shocks. The Manchester School, 83 (3), 314-345. (doi:10.1111/manc.12062).

Record type: Article

Abstract

We study dynamics of interactions among economic growth, population, and environmental quality when stochastic shocks in these systems display long-memory property. We make two important contributions. First, we show that the long-memory persistence in economic growth is determined jointly by the convergence speed of shocks in both environmental quality and population. Second, by simulating a modified Solow-Swan economy we demonstrate that the convergence-speed of shocks in these systems significantly affects the long-run growth trajectory of output. Our empirical examination evince that adjustment of output to long-run equilibrium is very slow, thanks to the slowly dissipating population and pollution shocks

Text
Mishra-Manchester-School-2015.pdf - Version of Record
Restricted to Repository staff only
Request a copy

More information

Accepted/In Press date: 28 February 2014
Published date: April 2015
Organisations: Southampton Business School

Identifiers

Local EPrints ID: 380119
URI: http://eprints.soton.ac.uk/id/eprint/380119
ISSN: 1463-6786
PURE UUID: 7e373700-e7a1-48f8-b27b-d9709f6fd457
ORCID for Mishra Tapas: ORCID iD orcid.org/0000-0002-6902-2326

Catalogue record

Date deposited: 03 Sep 2015 13:04
Last modified: 15 Mar 2024 03:51

Export record

Altmetrics

Contributors

Author: Theophile Azomahou
Author: Mishra Tapas ORCID iD
Author: Mamata Parhi

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×