In this paper, we define deficit sustainability by requiring formally that both the discounted debt vanish asymptotically and the undiscounted debt be bounded. Thus, a new necessary condition and a new testing procedure emerge. We propose a new test statistic and prove that its limiting...

In this paper, we define deficit sustainability by requiring formally that both the discounted debt vanish asymptotically and the undiscounted debt be bounded. Thus, a new necessary condition and a new testing procedure emerge. We propose a new test statistic and prove that its limiting...

In a recent paper of this journal (Vol. 18(1), 2007, pp. 75-85)], Kollias, Mylonidis, and Paleologou (henceforth KMP) examined the relationship between the GDP growth rate (denoted as gdp) and military expenditure as a share of GDP (denoted as milex) using panel data from the 15 countries of the...

We construct a model that considers the direct effects, if any, of government spending on the attitudes of a typical consumer toward risk, time preference, and intertemporal substitution. The null hypothesis is that a growing government sector does not affect the consumer's behavior, and the...

The paper discusses the problem of incompetent and/or irresponsible refereeing of scientific papers, with emphasis on economics papers. To illustrate, I describe my own confrontation with erroneous published papers, and demonstrate that writing comments on such papers does not always solve the...

By modifying slightly a standard neoclassical-synthesis macroeconomic model, this paper investigates the effects of an adverse supply or demand shock on output, employment, investment, prices, interest rates, and the exchange rate. The paper focuses on the possibility of the magnification of...

Using Australian quarterly data from the post-float period 1984:1-2003:1 and a partial system, we identify and estimate two cointegrating relations, one for the interest-rate differential and the other for the nominal exchange rate. Our estimate of the long-run elasticity of the exchange rate...

This comment points out some econometric errors contained in an Applied Economics article by Mavrommati and Papadopoulos (2005), to wit, the authors make an incorrect statement about the standard F-test; they claim erroneously that the Durbin-Watson test is irrelevant in panel data; they fail to...