Balanced growth and structural breaks: evidence for Germany
| Autor: | Dierk Herzer, Luca Zamparelli, Niels Kemper |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2011 |
| Předmět: |
Statistics and Probability
Consumption (economics) jel:D91 Economics and Econometrics balanced growth cointegration Cointegration Slowdown Structural break unit roots jel:C32 Investment (macroeconomics) jel:E23 Balanced growth × Unit roots × Cointegration × Endogenous structural breaks endogenous structural breaks Mathematics (miscellaneous) German economy Economics Econometrics Unit root Productivity Social Sciences (miscellaneous) |
| Popis: | One of the central hypotheses of the neoclassical growth literature is the balanced-growth hypothesis, which predicts that output, consumption and investment grow at the same rate. Empirically, this implies that the consumption-to-output ratio and the investment-to-output ratio must be stationary and that consumption and investment must be cointegrated with output. This article tests these implications with respect to Germany, using unit root tests and cointegration techniques that allow for an endogenously determined structural break. We find that the long-run growth path of the German economy is consistent with the balanced-growth hypothesis if we allow for a structural break associated with the worldwide productivity slowdown of the early 1970s. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|