We consider VAR models for variables exhibiting cointegration and common cyclical features. While the presence of cointegration reduces the rank of the long-run multiplier matrix, other types of common features lead to rank reduction of the short-run dynamics. We distinguish between strong and...

Advanced statistical techniques are used to analyze Hong Kong output dynamics. Hong Kong, Japan and the U.S. are found to share some common long-term and short-term cyclical variations. While the Hong Kong economy is susceptible to external shocks and Granger-caused by the other two economies,...

Compared to 1990 in 2019, Turkey increased its total energy imports by 287.03%, its total GDP by 123.28%, and its total renewable energy use by 774.26%. Therefore, the difference of this study from other studies is to investigate the factors affecting the increase in the use of renewable energy,...

This paper examines the relationship between exchange rate and trade balance in determining whether the J-Curve phenomenon hold in the short and long-run for Sierra Leone during the period 2002Q2 – 2019Q4. The econometric technique commenced with an assessment of unit root to ascertain the...

Bangladesh's considerable growth in recent years has drawn the attention of policymakers and academicians all around the world. Therefore, the current study is an effort to test the influence of macroeconomic determinants on Bangladesh’s economic growth. The ADF and PP tests are used to...

The present paper aims to divulge the nexus between external debt and economic growth in five SAARC countries: Bangladesh, India, Nepal, Pakistan and Sri Lanka, for the period 1971 to 2020. The primary investigation of the study reveals significant variation across countries. To consider the...

Dealing with endogenous regressors is a central challenge of applied research. The standard solution is to use instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the instrument and the error term has the same sign as the...

Both textbook economics and common sense teach us that the value of household wealth should be related to consumer spending. At the same time, movements in asset values often seem disassociated with important movements in consumer spending, as episodes such as the 1987 stock market crash and the...