This paper examines the responses of share prices in Belgium, Britain, France and Germany to the influences of major international share markets, domestic output and interest rates. The empirical results of the study indicate positive and significant responses of share prices to movements of...

The effect of fiscal measures on private investment is examined using variance decompositions derived from the error correction model. The empirical results of the study provide little support for the importance of fiscal measures in explaining variations of private investment. Output and...

Real interest rates are influenced by internal economic policies and also by movements of real rates in larger economies. The latter has become more influential as a result of the integration of global financial markets in the 1980s and 1990s. The empirical results of this study show that the US...

This study examines the effect of fiscal measures on real private consumption using an error correction model. On balance, the empirical results of the study provided some evidence against the Ricardian equivalence hypothesis. In particular, responses to real government consumption and taxes in...

This paper proposes a method to estimate the NAIRU for the U.S. It shares the notion of Estrella and Mishkin (1999) that defines the NAIRU as a leading indicator of inflation changes over the policy horizon. Our alternative construction offers a more theoretically sound and practically useful...

Dynamic interactions among the real exchange rate, income and imports are modelled for Australia. Evidence of one cointegrating relationship is found among these series and base structural inferences on long-run identifying restrictions of the type proposed for vector-error correction models by...

In their VAR model, Blanchard and Quah (BQ, 1989) employed uncorrelatedness between Aggregate Supply (AS) and Aggregate Demand (AD) shocks and the long-run output neutrality condition as identifying assumptions. This article conducts a simple Monte Carlo experiment to gauge how well the BQ...

There is a considerable discrepancy between GDP estimates which should be equal to one another. A method of allocating this discrepancy is proposed to derive an accurate measure of GDP with applications to the US and Korean economies.