Related Experiment Video
Updated: Jul 3, 2025

An R-Based Landscape Validation of a Competing Risk Model
Published on: September 16, 2022
Impact of capital market volatility on economic growth - An analysis based on stochastic volatility model
1Business School, University of International Business and Economics, Beijing, 100000, China.
Abstract:
This paper delves into the relationship between the volatility of the capital market and economic growth within the broader framework of the macro capital market. By employing the Heston stochastic volatility model in tandem with macroeconomic theory, we aim to analyze the stochastic control problem between the allocation trajectory of macro-capital and economic fluctuations. Our mathematical analysis reveals that the influence of capital shifts on economic growth's volatility varies across different capital markets due to diverse risk levels inherent within the macro-capital market. To validate these mathematical findings, we embark on an empirical econometric analysis tailored to the nuances of China's capital market and its macroeconomic operations. This econometric exploration yields two primary insights: 1. Distinct components of China's capital market have varying influences on macroeconomic growth. 2. The structure of China's capital market, especially in its impact on macroeconomic development, exhibits imbalances and lacks optimal configuration.
More Related Videos
Related Concept Videos
Econometric Views (EViews)
Empirical Method to Interpret Standard Deviation
This rule is used widely in statistics to calculate the proportion of data values...
Estimating Population Standard Deviation
Noncompartmental Analysis: Statistical Moment Theory
Parametric Survival Analysis: Weibull and Exponential Methods
Weibull Distribution
The Weibull distribution is a flexible model used in parametric survival analysis. It can handle both increasing and decreasing hazard rates, depending on its shape parameter...
Dynamic Equilibrium

