A test of the ‘corporate veil’ hypothesis using a panel set of annual observations over the period 1980-93 for five OECD countries (the United States, Japan, France, the United Kingdom and Canada) suggests that households pierce the corporate veil but not fully, wjth each additional $1 of...

This note presents results from Granger-causality tests on 22 Asian, Latin American and Caribbean developing economies in an attempt to distinguish between competing hypotheses regarding the role of financial deepening in economic growth. The results suggest that in many cases financial...

This paper examines the evidence of cost efficiencies resulting from hypothetical mergers in the Italian banking market. The approach adopted is similar to that of Shaffer (1992, 1993) where bank mergers are simulated and then total costs are calculated using the hybrid translog methodology for...

Inflation and the level of total factor, capital and labor productivity are integrated of the same order and are cointegrated in each of the G7 countries. The long-run relationship is mainly negative, the magnitude generally small, and there is no strong pattern of Granger causality between...

This note presents results from estimates of the Feldstein and Horioka (1980) investment-saving equation using pooled annual data for 21 OECD economies over the period 1960-94. The results indicate that international capital mobility is substantially higher than suggested by Feldstein and...

Commodity prices and U.K. retail prices do not appear to be cointegrated and short-run movements in commodity prices convey little information about future movements in U.K. retail prices. These findings, which may reflect the shift in final demand away from goods with a high commodity content,...

Recent research using time series cointegration techniques has suggested that fi scal policy in the EU-15 countries may have been on unsustainable path during 1970-2003. However, the time series techniques employed are know to have low power in small samples. The results from employing panel...