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Does Culture Cause Economic Development? A Reassessment of the Evidence from European Regions

Edwards, Jeremy - CESifo - 2012

This paper shows that Tabellini’s recent claim to have provided evidence that culture has a causal effect on economic development is unjustified. Tabellini’s claim is based on an instrumental variables analysis in which two instruments are used to identify the supposed causal effect. One of...

Persistent link: https://www.econbiz.de/10010595383

Cointegration Tests of PPP: Do they also Exhibit Erratic Behaviour?

Caporale, Guglielmo Maria; Hanck, Christoph - CESifo - 2006

(possibly unwarranted) homogeneity and proportionality restrictions are not imposed, and trivariate cointegration (stage …-three) tests between the nominal exchange rate, domestic and foreign price levels are carried out (instead of stationarity tests on …

Persistent link: https://www.econbiz.de/10005765840

Estimation and Inference In Short Panel Vector Autoregressions with Unit Roots And Cointegration

Binder, Michael; Hsiao, Cheng; Pesaran, M. Hashem - CESifo - 2000

derive unit root and cointegration tests in panels with short time dimension; these tests have the attractive feature that … estimators making use of variants of homoskedasticity and stationarity restrictions as suggested in the literature in a … hypothesis and cointegration tests based on it perform well in small sample; this is in marked contrast to the small sample …

Persistent link: https://www.econbiz.de/10005765796

The Sustainability of Fiscal Policy in Italy: A Long-Term Perspective

Bartoletto, Silvana; Chiarini, Bruno; Marzano, Elisabetta - CESifo - 2012

debt and its ratio to GDP. Second, exploiting unit root analysis and cointegration, we test for the sustainability of …

Persistent link: https://www.econbiz.de/10010548150

The Role of the Log Transformation in Forecasting Economic Variables

Luetkepohl, Helmut; Xu, Fang - CESifo - 2009

For forecasting and economic analysis many variables are used in logarithms (logs). In time series analysis this transformation is often considered to stabilize the variance of a series. We investigate under which conditions taking logs is beneficial for forecasting. Forecasts based on the...

Persistent link: https://www.econbiz.de/10005051585

Revisiting the Narrative Approach of Estimating Tax Multipliers

Hebous, Shafik; Zimmermann, Tom - CESifo - 2014

A number of recent studies regress a “narratively” identified measure of a macroeconomic shock directly on an outcome variable. In this note, we argue that this approach can be viewed as the reduced-form regression of an instrumental variable approach in which the narrative time series is...

Persistent link: https://www.econbiz.de/10010948895

Once Upon a Time Preference - How Rationality and Risk Aversion Change the Rationale for Discounting

Traeger, Christian - CESifo - 2012

The paper develops an axiomatic framework for rational decision making. The von Neumann-Morgenstern axioms give rise to a richer risk attitude than that captured in the standard discounted expected utility model. I derive three models that permit a more comprehensive risk evaluation. These...

Persistent link: https://www.econbiz.de/10010544183

Panels with Nonstationary Multifactor Error Structures

Kapetanios, George; Pesaran, M. Hashem; Yamagata, Takashi - CESifo - 2006

cointegration properties of the unobserved factors. This finding is further supported for small samples via an extensive Monte Carlo …

Persistent link: https://www.econbiz.de/10005094412

Carry Funding and Safe Haven Currencies: A Threshold Regression Approach

Hossfeld, Oliver; MacDonald, Ronald - CESifo - 2014

In this paper, we analyze which currencies can be regarded as safe haven currencies. Our empirical approach allows us to distinguish between a low- and high stress regime, and to control for the impact of carry trade reversals and other fundamental determinants. We therefore address the question...

Persistent link: https://www.econbiz.de/10011097944

Testing the Tax Competition Theory: How Elastic are National Tax Bases in OECD Countries?

Riedl, Aleksandra; Rocha-Akis, Silvia - CESifo - 2009

To what extent do countries' corporate income tax (CIT) rates attract foreign tax bases? What are the revenue implications of a unilateral tax reduction when tax bases are internationally mobile? These questions are explored using a panel of annual data from 17 OECD countries spanning the period...

Persistent link: https://www.econbiz.de/10004979400