This paper investigates the Abrams curve, that is the relationship between government size and unemployment, for 10 European countries over the period 1961-1999. This paper uses credible causality inferences that do not depend on the stationarity or cointegration properties of the data. The...

Using panel data unit root tests and panel cointegration tests including Johansen maximum likelihood cointegration tests, as well as estimation techniques appropriate for heterogeneous panels such as fully modified OLS, this study examines the effect of currency devaluation on output expansion...