This companion paper to Chatelain and Ralf (2012), “Spurious regressions with near-multicollinearity” put their results into the contexts of the history of statistics, of the current publication bias in applied sciences and of the substantive versus statistical significance debate. This...

Most macroeconomic models, such as the IS-LM, assume equilibrium in money markets. Since money demand is an inverse function of velocity, an inaccurate estimate of velocity will lead to errors in calculating the monetary and general equilibria. This note suggests a way to gauge the potential...

This paper proposed a new optimal design of Early Warning Systems (EWS) to detect early warning signals of an impending financial crisis. The problem of EWS was formulated from a policy maker's perspective. Hence the probability threshold was obtained by minimizing the policy maker's welfare...

The paper explores puzzles in Indian growth performance such as the prolonged period of below potential growth in the late nineties. Uneven investment was a major explanation. Risk aversion and adverse expectations prevented investment from rising. Since sufficient domestic and foreign savings...

Twenty-eight months after the onset of the global financial crisis of August 2008, the evidence on post-crisis GDP growth emerging from a sample of 51 advanced and emerging countries is flattering for inflation targeting countries relative to their peers. The positive effect of IT is not...

In this paper, we study some empirical issues in the estimation of a New-Keynesian Phillips curve for Tunisia. In this purpose, we compare the performance of the strict and hybrid forms in the validation of data. In addition, we try to establish the sensitivity of the Phillips curve estimation...

This paper explores the disconnect of Federal Reserve data from index number theory. A consequence could have been the decreased systemic-risk misperceptions that contributed to excess risk taking prior to the housing bust. We find that most recessions in the past 50 years were preceded by more...

The article examines the evidence for credit channel on the composition of corporate finance during tight and loose periods of monetary policy, using micro-level data on Indian firms for 1995-2007. The findings provide evidence in favor of the relationship lending view, although the magnitude...

This paper examines the link between structural change and growth in India. It constructs indices of structural change, and performs a time series analysis of the data. It finds that 1988 marks a break in the time series of growth and structural change. There is one-way causality from structural...

This study probes nexus between electricity consumption and GDP for the electricity community of Togo and Benin using ARDL bounds testing approach of cointegration. Long-run equilibrium has been established among these variables for Benin. The study further establishes long- and short-run...