The influence of government size on per capita GDP growth has attracted much interest from scholars during the past two decades. However, despite all the work conducted, there is no consensus among researchers on the importance of government size in affecting economic growth. Some authors find...

This article investigates the degree of persistence of different inflation rates for the Spanish economy using the Consumer Price Index (CPI) for the aggregate as well as for the regions, provinces and eight groups of goods and services, in addition to the Producer Price Index (PPI) for the...

This article investigates the degree of persistence of different inflation rates for the Spanish economy using the Consumer Price Index (CPI) for the aggregate as well as for the regions, provinces and eight groups of goods and services, in addition to the Producer Price Index (PPI) for the...

Corruption is harmful for public finances and appears closely related to fiscal deficits. We open a new avenue in addressing the effects of corruption on public deficits through fiscal decentralization. For a sample of 31 OECD countries over the period 1986–2010, we find that fiscal...

This paper tests the hysteresis hypothesis for the unemployment rate of the Spanish regions over the period 1976–2004. For that purpose, we employ a large battery of recently developed panel tests which explicitly control for cross-sectional correlation in addition to the panel stationarity...

"This article tests the main unemployment paradigms for the unemployment rates of the states of the United States and the European Union-15 countries over the past three decades. For that purpose, we employ a state-of-the-art panel stationarity test, which allows for an unknown number of...

In this paper, we investigate the existence of infrequent shocks and the degree of persistence of U.S. state unemployment over the period 1976–2004. We first apply individual Lagrange multiplier (LM) unit root tests and fail to reject the hysteresis hypothesis in forty states. When two changes...

This paper investigates the hypothesis of a unit root in inflation for 13 OECD countries over the period 1957-2005, taking into account cross-sectional dependence and multiple mean shifts. We conduct unit root testing with the more powerful unit root tests with cross-dependence proposed by Smith...

Cross-country differences in output persistence are well documented in the literature. Further, Fatás (2000) finds a strong positive correlation between the persistence of fluctuations and long-term average growth rates for a sample that includes the G7 countries and eight additional OECD...