Using Australian quarterly data from the post-float period 1984:1-2003:1 and a partial system, we identify estimate two cointegrating relations, one for interest-rate differential other nominal exchange rate. Our of long-run elasticity rate with respect to commodity prices is 0.939, which strongly supports widely held view that floating dollar ‘commodity currency’. We also find PPP UIP cannot be rejected so long as are included in relations. model outperforms random walk forecasting medium run.

Using a two-period overlapping generations model and three panel data sets of annual aggregate from twenty-five countries, we estimate fixed-effects Euler equation for household saving. We focus on the effects several institutional other variables, such as corruption debt to gross domestic product (GDP) ratio, saving probability that pay-as-you-go social security system will grant pensions. find contributions reduce in less than one-for-one manner. Also, or GDP ratio increases, pensions...

The paper derives a nonlinear error-correction model (ECM) for consumption and shows that existing models are based on quadratic utility, combine permanent income current-income consumption, nest (or could nest) the hypothesis of substitutability between private government purchases special cases ECM. importance some econometric issues have not received proper attention in literature is demonstrated by estimating using US aggregate quarterly data, 1953:1-1992:4. evidence suggests ECM...

Abstract In a recent paper of this journal (Vol. 18(1), Citation2007, pp. 75–85)], Kollias, Mylonidis, and Paleologou (henceforth KMP) examined the relationship between GDP growth rate (denoted as gdp) military expenditure share milex) using panel data from 15 countries European Union (EU15), 1961–2000 (T=40 annual observations each country). Given that Common Security Defence Policy (CESDP) is under consideration in EU15 group, an interesting paper. My comments relate to its econometrics...

Using a Phillips-type equation and annual aggregate data from 15 Organization for Economic Cooperation Development (OECD) countries, we estimate the effects of following policies on ‘non-accelerating inflation rate unemployment’ (NAIRU): restrictions firing, growth in government ‘productive’ expenditure, social security benefits, lax immigration policy. We consider Greece separately, but treat other 14 countries as fixed-effects panel. Two seem to be robust changes sample: firing benefits...

The paper extends the constant-relative-risk-aversion model by endogenizing Arrow-Pratt coefficient of relative risk aversion. empirical application treats this as a linear function rate growth real government expenditure per worker and estimates Euler equation for consumption using Greek annual aggregate data period 1960-1993. results support view that may cause typical consumer to become less averse save less.

We construct a model that considers the direct effects, if any, of government spending on attitudes typical consumer toward risk, time preference, and intertemporal substitution.The null hypothesis is growing sector does not affect consumer's behavior, alternative it causes him to become less risk averse, more impatient consume now rather than in future, responsive changes real interest rates.If correct, then growth may lead lower economic growth.Using Greek annual aggregate data, 1960-1990,...

Assun¸cão showed that the lower bound for mean squared relative error (MSRE) of an unbiased estimator can be expressed in terms elasticity, thus providing a meaningful interpretation MSRE bound. Where MSE is preferred to MSRE, however, idea elasticity does not apply and must replaced by semielasticity. In this article, we restate Fisher information measure, Cramér-Rao bound, identification problem

Abstract: The paper proposes a new approach to testing the potency of government purchases stimulate economy by set conditions implied Ricardian Equivalence (RE) proposition that typical household incorporates government's budget constraint into its own. These are as follows: (1) private consumption, income, and form “levels relationship”; (2) considering consumption dependent variable, coefficients income 1 -1. last restriction is also hypothesis perfect substitutes, however, so...