Effects of investors' expectations on GDP growth volatility in Chile

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Published: 2017-12-29
DOI: https://doi.org/10.22320/hem.v16i2.3106
Keywords:
investor’s expectations, GDP growth volatility, Vector Error Correction Model

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Arielis Valdebenito Espinoza
University of Talca image/svg+xml

Abstract

The aim of this research is to analyze the impact of investors' expectations on the GDP growth volatility in Chile from 2003 to 2016. For this purpose, monthly data for the Business Confidence Index and IMACEC is used. By means of Vector Error Correction Model the relationship between GDP growth volatility and investor’s expectations is studied, in both the short and long term. Results show that an improvement on investor’s expectations has a significant impact decreasing the GDP growth volatility.

Article Details

Issue

Vol. 16 No. 2 (2017): Diciembre

Section

Artículos de Investigación

Horizontes Empresariales se distribuye bajo licencia Creative Commons Atribución 4.0 Internacional (CC BY 4.0).

 

Author Biography

Arielis Valdebenito Espinoza, University of Talca

Estudiante de Magíster en Economía.

References