Expecting the unexpected: economic growth under stress

Gloria Gonzalez-Rivera, Carlos Vladimir Rodríguez-Caballero, Esther Ruiz Ortega

Publikation: Working paper/Preprint Working paperForskning

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Large and unexpected moves in the factors underlying economic growth should be the main concern of policy makers aiming to strengthen the resilience of the economies. We propose measuring the effects of these extreme moves in the quantiles of the distribution of growth under stressed factors (GiS) and compare them with the popular Growth at Risk (GaR). In this comparison, we consider local and global macroeconomic and financial factors affecting US growth. We show that GaR underestimates the extreme and unexpected fall in growth produced by the COVID19 pandemic while GiS is much more accurate.
UdgiverInstitut for Økonomi, Aarhus Universitet
Antal sider29
StatusUdgivet - 15 mar. 2021
NavnCREATES Research Paper


  • Growth vulnerability
  • Multi-level factor model
  • Stressed growth