This note tests the rational expectations-permanent income hypothesis for the six ASEAN countries using the methodology developed by Hall and Flavin. The statistical evidence rejects the hypothesis for each country except Singapore.

We report estimates of long-run and short-run money demand functions in Italy over the period 1861-1980 which are robust in terms of passing a range of diagnostic tests and exhibit a fairly high degree of parameter stability. The results are comparable to those of previous analysis of long-run...

Regression results from a panel data set of high-quality comparable data on Gini coefficients, income quintiles and real GDP per capita in 96 countries over the postwar period, suggest that the relation between income inequality and development corresponds to an inverted-U, as hypothesized by...

Unbalanced panel least squares regression results (with fixed cross-section and period effects) suggest that changes in the fiscal balances of central and sub-national tiers of government in OECD countries tend to be highly positively correlated and that this partly reflects the existence of...

Panel cointegration techniques indicate that government revenue (REV) and expenditure (EXP) in a panel of five Asian economies for the period 1974 to 2001 were nonstationary and cointegrated series. However, the cointegration coefficient was significantly less than unity, indicating 'weak'...

Fatas and Mihov (2001a, b) reported a negative and statistically significant relation between government size and output variability in a cross-section of 20 Organization for Economic Cooperation and Development (OECD) countries and concluded that large governments stabilize output. This...

In recent years, at least 10 emerging market economies have sought to anchor their fiscal frameworks in fiscal responsibility laws. Key factors in the decision appear to include a prior improvement in fiscal discipline, particularly in the context of a federal fiscal system, substantial ethnic...

Results using event study analysis based on a data panel of expenditure and revenue developments in emerging market economies during 1972-2001 indicate that subnational governments supported fiscal consolidation efforts by cutting their capital expenditure and increasing their revenues.

Granger-causality tests on data for 22 Asian, Latin American and Caribbean developing economies suggest that financial deepening does not make much difference to economic growth: for eight countries no lead-lag relationship was detected and in six more economic growth led financial deepening.

This letter presents estimates of a stable long-run money demand function in Italy over the period 1861-1980. Results using the Johansen procedure of cointegration indicate a unique, long-run demand function for currency and the broad money supply. In each case, the real income and interest rate...