Table 1: Summary Statistics

	GDP volatility(a)				Product market regulation(b)			Monetary policy regime(c)		Inflation volatility(d)				Days lost to labour disputes(e)
	1978	1983	2003		1978	1998		Strict inflation regime		1978	1983	2003		1978	1983	2003
Australia	1.0	2.4	0.6		4.5	1.6		1993–		3.0	2.9	0.3		580	481	49
Austria	2.8	1.9	1.2		5.2	3.2		1995–		2.4	1.5	0.8		1	1	65
Belgium	2.8	1.9	1.4		5.5	3.1		1979–		3.6	1.6	0.6		197	109	15
Canada	1.2	2.7	1.7		4.2	2.4		1992–		1.6	2.5	0.4		853	651	146
Denmark	3.3	2.2	1.0		5.6	2.9		1979–		2.5	2.1	0.3		72	98	39
Finland	1.3	1.9	1.5		5.6	2.6		1994–		3.9	2.0	1.0		400	294	41
France	1.7	0.9	1.5		6.0	3.9		1979–		1.9	1.7	0.6		167	101	77
Germany	2.6	1.9	1.3		5.2	2.4		Always strict		1.7	3.1	0.5		48	6	3
Ireland	2.7	2.1	3.1		5.7	4.0		1979–		5.1	4.0	1.5		487	526	58
Italy	3.3	2.0	1.2		5.8	4.3		1979–1992; 1999		2.7	2.8	0.4		993	848	90
Japan	2.5	2.1	1.1		5.2	2.9		Always strict		7.2	2.3	0.3		91	13	1
Netherlands	1.9	1.5	2.0		5.3	3.0		1979–		2.6	1.7	1.0		10	24	11
New Zealand	3.7	1.5	0.8		5.1	1.4		1990–		2.2	3.9	1.2		229	241	16
Norway	1.4	2.6	1.1		5.0	2.5		2000–		1.3	3.4	0.7		64	44	58
Portugal	4.4	1.8	2.1		5.9	4.1		1992–		4.2	3.3	0.8		128	145	12
Spain	2.0	2.3	1.0		4.7	3.2		1989–		3.5	1.4	0.5		705	629	162
Sweden	1.8	1.0	1.7		4.5	2.2		1995–		0.7	2.7	0.8		30	225	34
Switzerland	3.8	1.4	1.5		4.5	3.9		Always strict		3.9	1.5	0.4		2	1	3
UK	2.1	2.2	0.8		4.3	1.0		1990–		5.7	5.0	0.7		351	441	22
US	3.0	2.5	1.5		4.0	1.4		1979–		2.1	4.1	0.7		396	170	41
Average	2.5	1.9	1.4		5.1	2.8				3.1	2.7	0.7		290	252	47

	Openness(f)				Financial liberalisation(g)				Oil price volatility(h)				Government balance volatility(i)				GDP less change in inventory volatility(a)
	1978	1983	2003		1978	1983	2003		1978	1983	2003		1978	1983	2003		1978	1983	2003
Notes: Annual data from 1973 to 2003. Standard deviations and averages are taken over 5-year periods ending in the dates shown. (a) Standard deviation of annual growth rate over a 5-year window. (b) Averages of indicators on regulatory and market environment for seven energy and service industries, see Nicoletti et al (2001); scale 0–6 from least to most restrictive. (c) Year country adopted a strict policy towards inflation. (d) Standard deviation of the annual growth rate of the CPI deflator over a 5-year window. (e) Number of working days lost due to industrial disputes divided by total employment, times 1000; five-year average. (f) The value of total trade as a per cent to GDP; five-year average. (g) Total credit as a per cent to GDP; five-year average. (h) Standard deviation of the annual growth rate of West Texas Intermediate crude oil price over a five-year window; measured in SDRs per barrel. (i) Standard deviation of annual cyclically-adjusted government fiscal balance as a per cent to GDP over a 5-year window. Sources: See Appendix B
Australia	29	32	42		45	53	117						1.2	0.4	1.1		2.6	1.9	0.7
Austria	64	72	100		58	75	104						1.4	0.8	1.2		2.1	0.8	1.4
Belgium	110	127	161		24	29	78						0.7	2.2	0.3		1.7	1.2	1.5
Canada	47	51	80		96	105	139						2.0	1.2	1.6		2.6	3.3	1.7
Denmark	60	68	80		159	134	139						2.0	1.4	0.8		2.6	1.9	1.1
Finland	53	61	70		45	43	58						1.6	1.2	1.6		2.0	0.6	1.3
France	32	36	43		49	70	73						0.7	0.7	1.0		0.8	0.6	1.4
Germany	38	43	55		66	75	119						0.9	1.9	1.0		2.0	1.6	1.6
Ireland	96	104	170		27	36	110						–	2.8	2.1		4.8	2.5	3.6
Italy	44	46	53		81	62	79						1.2	2.0	0.8		1.1	1.8	1.8
Japan	25	27	20		85	87	110						1.3	1.0	0.6		2.9	1.3	0.9
Netherlands	96	106	122		41	58	143						–	1.5	0.8		0.6	1.2	2.2
New Zealand	54	60	64		18	21	121						–	–	0.6		4.0	2.7	0.8
Norway	78	78	72		53	52	100						–	1.0	2.2		1.4	2.8	1.1
Portugal	50	64	70		77	80	141						2.3	2.9	1.3		0.8	0.8	2.1
Spain	30	35	59		80	78	105						–	1.0	0.5		1.6	0.9	1.0
Sweden	55	61	83		40	40	44						–	1.2	1.7		0.7	0.7	1.7
Switzerland	62	69	82		89	115	160						–	–	–		3.2	1.9	1.5
UK	43	41	41		43	48	117						0.7	1.8	2.3		1.4	1.9	0.8
US	17	19	24		99	103	143						1.2	0.8	2.8		2.6	2.2	1.4
Average	54	60	75		64	68	110		113.6	57.5	28.1		1.3	1.4	1.3		2.1	1.6	1.5