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.

The long-run money-inflation relation is re-examined in the context of De Grauwe and Polan's (2005) recent claim that the monetary aggregates are of no use for monetary analysis at low rates of inflation, and Nelson's (2002) counterclaim that in cross-country analysis money should be defined as...

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...

Southeast Asia exhibits a bias towards intra-regional trade but not one that is out of line with the size, growth rates and geographical proximity of these countries; there is more trade bias than exhibited by the EU but less than that of NAFTA and, unlike in the EU and NAFTA, southeast Asian...

Evidence is presented in favour of a Fisher effect between treasury bill interest rates and inflation in Mexico between 1978-94. The two series appear to be cointegrated and a unit proportional relationship between them would appear to exist such that treasury bills rates respond fully to...

The long-run tendency for government expenditure to grow relative to GNP, Wagner's law, is tested for six European countries using data from around the mid-19th century to 1913. With few exceptions the results suggest that: nominal and real GNP, nominal and real government expenditure, and...

Recent studies examining the relation between fiscal decentralization and consolidated government fiscal balances generally have not taken proper account of the extent of the independent taxing powers available to sub-national governments and thus have overstated the degree of effective revenue...

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...