The paper studies empirically how relative supply and demand conditions on the capital market affected US firm-level investment over the business cycles from 1977 to 2011. A dynamic econometric specification of capital accumulation including sales growth, Tobin's q, the cash flow-capital ratio...

Identified vector autoregressive (VAR) models have become widely used on time series data in recent years, but finite sample inference for such models remains a challenge. In this study, we propose a conjugate prior for Bayesian analysis of normalized VAR models. Under the prior, the marginal...

This paper investigates the differences between real-time and ex-post output gap estimates using a newly-constructed international real-time dataset over the period from 1973:Q1 to 2012:Q3. We extend the findings in Orphanides and van Norden (2002) for the United States that the use of ex-post...

Procyclical government spending occurs when government expenditures increase at a faster rate than income in an economic upturn but fall at a faster rate in a recession. Voracity effects occur when competition for increased spending proves more effective as national income increases. Public...

This work examines the presence of a partisan effect in the US markets over different presidential periods. The analysis is based on the computation of the fractal scaling dynamics of the Dow Jones Industrial Average by means of the detrended fluctuation analysis. The results indicated the...

This article examines endogenous fluctuations under habit persistence in preferences using an otherwise standard one-sector endogenous growth model with fiscal government policies. I show that a continuum of competitive transitional equilibrium paths exists, in conjunction with a globally unique...

This paper examines the relationship between real output and real credit at business-cycle frequencies in Greece. The Granger causality tests indicate that real credit is important to understanding future movements in real output, given the trade deficit ratio. The impulse response analysis...