This study investigates the validity of the demand-pulling and the supply-leading hypotheses using annual data from 1968 to 2005. The bounds testing approach to cointegration is conducted to establish the existence of a long-run relationship between financial development and economic growth. An...

This paper estimates the steady state growth rate for Scandinavian countries with a “knowledge economy” approach. We shall use an extended version of the Solow (1956) growth model, in which total factor productivity is assumed to be a function of human capital (measured by average years of...

This paper estimates the steady state growth rate for Ireland with an extended version of the Solow (1956) growth model. We show that the education and trade openness have played an important role to improve the long-run growth rate. Policies to further improve the long-run growth rate are...

Analysis of the economic activity in the pre-crisis period of 2000-2008. shows a steady decrease in the efficiency of actual production in Russia. Many businesses come to a threshold of bankruptcy: the profitability and financial strength are low, their products are not competitive, sources of...

The Russian Government remains committed to the resource model. Every year more and more difficult to meet the country's needs for material wealth at the expense of resource revenues. The biggest debate is to validate the measures and forms of government involvement in the economy. The results...

Competitiveness is a concept referred to as a sine qua non condition of growth, at both micro and macroeconomic level. But there are few approaches looking at the single currency as an instrument of competitiveness measuring and promotion. The single currency represents a right step in the...

The Bank of the Euro, that is the European Central Bank, is the topic of this paper, since on January 1999 started the European Monetary Union that introduced a single currency, the euro, which in turn will be managed by the European Central Bank. The paper takes in particular consideration what...

Fractional cointegration has attracted interest in time series econometrics in recent years (see among others, Dittmann 2004). According to Engle and Granger (1987), the concept of fractional cointegration was introduced to generalize the traditional cointegration to the long memory framework....

In this study the extended Overnight Index Rate (OIR) model is presented. The fitting function for the probability distribution of the OIR daily returns is based on three different Gaussian distributions which provide modelling of the narrow central peak and the wide fat-tailed component....

The aim of this study is to search for a better optimization algorithm in applying unit root tests that inherit nonlinear models in the testing process. The algorithms analyzed include Broyden, Fletcher, Goldfarb and Shanno (BFGS), Gauss-Jordan, Simplex, Genetic, and Extensive Grid-Search. The...