This letter examines the role of Germany in the determination of bank credit in the EU. For a sample of ERM members, the Johansen procedure is employed to test for bivariate cointegrating relationships with Germany. Causality is investigated using the error correction methodology advocated by...

This paper investigates the dynamic interrelationships of economic activity in major economies under the pre- and post-Bretton Woods eras of fixed and flexible exchange rates. A recently developed multivariate method called common trends and common cycles is used to detect the presence of both...

The paper proposes a modified human development index (HDI) which complies with the view of the Sen and others that an increase in the value of a physical indicator at a higher level represents a greater achievement than an equal increase in its value at the lower level. It also includes an...

Beginning in 1933, with the establishment of the first federally chartered savings and loan, the thrift industry has functioned under a dual regulatory system. This paper addresses the question of whether this moral hazard, created by regulatory competition, increased the resolution costs of...

The Thirlwall-Hussain model (in which output growth depends on export growth) and an ad hoc alternative (in which growth depends on imports) are estimated and compared for the USA. The Durbin-Wu-Hausman test is used to determine the endogeneity or exogeneity of exports and imports with respect...

Using a vector autoregressive framework, this paper examines the role of real and monetary factors in explaining velocity instability in the sample periods 1973:1-1993:2 and 1979:4-1993:2. The VAR model includes money growth variability, velocity, the interest rate and real output. On the basis...

The suitability of the elliptical distribution to model asset returns in applied work is examined. Two frameworks are identified: the first framework allows for normality testing but fails to capture the GARCH effect present in the data; the second framework captures the GARCH effect but has the...

Empirical evidence on capital market integration in Europe is presented by testing for mean reversion in the real interest differentials of seven European countries vis-a-vis Germany. The tests overwhelmingly reject the null hypothesis of random walk in the real interest rate differentials,...

The shape of Kaldor's technical progress function is retested using time-series data for a selection of OECD countries. In contrast to Bairam's study, which is criticized for its restrictions on several of the key variables, it appears that the function can be specified as a linear equation....

This paper applies the well-known cointegration approach to explore a possible long-run pairwise relationship between (i) US real budget deficits and real exchange rates, and (ii) US inflation rates and real exchange rates. The unit root test shows that each of the above time series is...