Caribbean Economic Overview 2002 : Macroeconomic Volatility, Household Vulnerability, and Institutional and Policy Responses

This report uses an analytical framework that take into account the effect of natural disasters as well as country size in measuring the serious implications macroeconomic or aggregate volatility (marked period-to-period variations in measures of macroeconomic performance, such as GDP growth) has for individuals and households in Caribbean countries. The report is organized as follows: Chapter 1 reviews the recent economic and social development of the Caribbean. Chapter 2 begins by characterizing volatility of aggregate income and consumption growth and by employing regression analysis to assess the relative importance of the different factors that would be expected to determine macroeconomic volatility in the Caribbean. The chapter also examines factors that might be expected to influence the extent to which macroeconomic volatility is absorbed or amplified-that is, the extent of financial market development, the behavior of remittances, and the size and volatility of external capital flows. Chapter 3 addresses the broad question of how macroeconomic volatility in the Caribbean affects households and their income and consumption,; and how households respond to shocks and how such effects differ by socioeconomic status. Chapter 4 reviews the extent to which countries and households in the Caribbean region use market insurance, self-insurance, self-protection, or other outside protection mechanisms to deal with aggregate shocks. It points to policy areas for further attention

Bibliographic Details

Main Author:	Caribbean Group for Cooperation in Economic Development
Language:	English en_US
Published:	World Bank, Washington, DC 2002-06
Subjects:	CARIBBEAN REGION, VULNERABILITY, NATURAL DISASTERS, INTERNATIONAL TRADE, LABOR MARKETS, MACROECONOMIC SHOCKS, ECONOMIC SHOCKS, ECONOMIC GROWTH, EXTERNAL FINANCE, SOCIAL INDICATORS, SELF-INSURANCE, HOUSEHOLD WELFARE INDICATORS, HOUSEHOLD SURVEYS, HOUSEHOLD CONSUMPTION, UNEMPLOYMENT RATES, HOUSEHOLD INCOME, HOUSEHOLD DATA, COMMODITY STABILIZATION FUNDS, TRADE STRUCTURE, COMMODITY TRADE, WORKERS REMITTANCES, CAPITAL FLOWS AGGREGATE INCOME, AGRICULTURAL PRODUCTION, AGRICULTURAL SECTOR, AGRICULTURE, BUSINESS CYCLE, BUSINESS CYCLES, CAPITAL FLOWS, CAPITAL FORMATION, CONSUMERS, CONSUMPTION GROWTH, COUNTRY CASE, COUNTRY SIZE, CURRENCY, DEBT, DEPENDENT VARIABLE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DIRECT INVESTMENT, DISECONOMIES, DISPOSABLE INCOME, DIVERSIFICATION, DOMESTIC CREDIT, DOMESTIC MARKETS, ECONOMIC ACTIVITIES, ECONOMIC DEVELOPMENT, ECONOMIC DOWNTURNS, ECONOMIC FLUCTUATIONS, ECONOMIC PERFORMANCE, EDUCATED WORKERS, EDUCATION LEVEL, EXPORTS, EXTERNAL DEBT, EXTERNAL IMBALANCES, EXTERNAL SHOCKS, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SYSTEMS, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, GDP, GNP, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, GROWTH PERFORMANCE, GROWTH RATE, GROWTH RATES, HEALTH CARE, HIGH GROWTH, HIGH VOLATILITY, HUMAN CAPITAL, IMPORTS, INCOME DISTRIBUTION, INCOME GROWTH, INCOME LEVELS, INCOME MEASURES, INFLATION, INFLATION RATES, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL MEASURES, INSURANCE, LABOR FORCE, LABOR MARKET, LIQUIDITY, LIVING CONDITIONS, LIVING STANDARDS, M2, MACROECONOMIC ENVIRONMENT, MACROECONOMIC PERFORMANCE, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MONETARY POLICY, NATIONAL INCOME, OIL, PER CAPITA GROWTH, PER CAPITA INCOME, PER CAPITA INCOME LEVELS, PER CAPITA INCOMES, PERFORMANCE INDICATORS, POLICY VOLATILITY, POOR COUNTRIES, POOR HOUSEHOLDS, POPULATION GROWTH, POVERTY LINE, POVERTY REDUCTION, PRICE FLUCTUATIONS, PRIVATE CONSUMPTION, PUBLIC POLICY, PUBLIC SECTOR, REAL INCOME, REGIONAL AVERAGES, REGRESSION ANALYSIS, RELATIVE IMPORTANCE, RISK MANAGEMENT, SAFETY NET, SAVINGS, SOCIAL DEVELOPMENT, SOCIAL WORK, SOLVENCY, STANDARD DEVIATION, STATISTICAL ANALYSIS, STRUCTURAL CHANGE, TECHNOLOGICAL CHANGE, TERMS OF TRADE, TIME CONSTRAINTS, TRADE OPENNESS, TRADE SHOCKS, UNEMPLOYMENT, UNEMPLOYMENT RATE, WELFARE GAINS, YOUTH, YOUTH DEVELOPMENT,
Online Access:	http://documents.worldbank.org/curated/en/2002/06/1982683/caribbean-economic-overview-2002-macroeconomic-volatility-household-vulnerability-institutional-policy-responses https://hdl.handle.net/10986/15374
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