We use a residual-based cointegration test suggested by Gregory and Hansen that allows for the determination of a structural break in the cointegration vector to test for the sustainability of Greek fiscal deficits over the 1958-92 period. This relatively recent test leads to a different result...

This paper tests for the long-run and short-run relationship between prices and wages in the Irish economy over the 1975-92 period. Using recent econometric techniques in the analysis of time series, we conclude that there is a long-run equilibrium relationship between prices, wages and an...

This article applies the test by Kapetanios et al. (2003) to re-examine the nonlinear stationarity of real exchange rates in which we emphasize both the real bilateral exchange rates and the real effective exchange rates. Our empirical findings provide weak evidence on the nonlinear...

This paper discusses the reliability of using a Granger causality test to find an engine of growth. The paper first focuses on growth models' cointegration implications since causality must exist in an error-correction model. As a complementary, Monte Carlo experiments with independently...