PT  - JOURNAL ARTICLE
AU  - Chandra, Siddharth
TI  - A Test of the Regional Growth-Instability Frontier Using State Data
AID  - 10.2307/3146901
DP  - 2002 Aug 01
TA  - Land Economics
PG  - 442--462
VI  - 78
IP  - 3
4099  - http://le.uwpress.org/content/78/3/442.short
4100  - http://le.uwpress.org/content/78/3/442.full
SO  - Land Econ2002 Aug 01; 78
AB  - The application of the portfolio framework to the economy predicts the existence of a convex growth-instability frontier. Using two data sets on Gross State Product for the states of the United States, this hypothesis is tested. The tests confirm the existence of a convex frontier for economic growth and instability. The shape of the frontier is estimated, and growth-adjusted measures of economic instability based on the frontier are computed. Over long periods of time, economic instability is negatively correlated with a range of measures of economic diversity, providing further support for the portfolio view of economic growth. (JEL R11)