A note on the macroeconomic consequences of ethnic/racial tension
Economics Letters, cilt.155, ss.100-103, 2017 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 155
- Basım Tarihi: 2017
- Doi Numarası: 10.1016/j.econlet.2017.02.015
- Dergi Adı: Economics Letters
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
- Sayfa Sayıları: ss.100-103
- Anahtar Kelimeler: Ethnic tension, Markov Switching, News, Racial tension
- Boğaziçi Üniversitesi Adresli: Evet
Özet
While many studies stressed the importance of ethnic fractionalization on long-term economic growth, neither ethnic fractionalization always leads to ethnic conflict nor the intensity of conflict is constant over time. To address this potential bias, we construct an ethnic/racial tension index by using the number of US news articles that contain certain keywords. Utilizing this index we test the predictions of a simple theoretical model in a Markov Switching framework which allows to identify the impact of ethnic/racial tension in different states of the economy. Consistent with our theoretical predictions, results show that the magnitude of the impact of ethnic/racial tension is larger during low-growth periods.