This paper investigates the effects of the omission of relevant variables from the statistical model on cointegration analysis, proposed by Johansen (1988, 1991). We show that underspecification of the statistical model leads to either failure in detecting cointegration or underestimation of the...

This article provides estimates of output losses of the banking crisis in Cyprus for the period 2012-2020. Unlike most studies, where the effects of banking crises are computed ex post using actual data, the crisis in Cyprus is still evolving and thus the output losses and the period over which...

The European Union's energy and climate policy package will cause an increase in end-user prices of electricity and fuels. This paper assesses the distributional effects of these price increases in Cyprus by specifying and estimating a household energy demand system with price heterogeneity...

We investigate analytically and via Monte Carlo simulations the effects of the inclusion of irrelevant variables in the statistical model, on the cointegration analysis of Johansen (1988, 1991). We show that overspecifying the statistical model does not affect inference about the cointegrating...

This paper investigates the usefulness of information collected through Business and Consumer Surveys in Cyprus, as a tool for monitoring the developments in the economy and as an input in econometric modelling for the construction of short-term forecasts for macroeconomic variables. The...

This paper presents some facts about aggregate health expenditure and analyses factors affecting the level of household health expenditure in Cyprus, with emphasis on the type of cover of household members. The implications of individuals’ entitlement to free public care for the well-being of...

This paper uses individual firm data from the Cyprus Business Surveys for the period May 2009 - April 2011 to assess the extent to which expectations about activity and employment stated in a given month agree with realisations reported by the same firms in subsequent Surveys. The results show...

Tourism has traditionally been a major source of income and a driver of economic growth in Cyprus. Over the last few years however, tourism as an economic activity has entered a slowdown phase and the Cypriot tourist product has undergone a continuous loss of competitiveness, due to both...

The European Union's energy and climate policy package is expected to cause an increase in end-user prices of electricity and fuels. This paper assesses the distributional effects of these price increases in Cyprus by specifying and estimating a consumer demand system with price heterogeneity...

The paper presents the first empirical analysis of electricity consumption in Cyprus. Using annual data from 1960 to 2004, we have examined electricity use in the residential and the services sectors, which are the fastest-growing electricity consumers in the island, and its interaction with...