This paper empirically investigates output and consumption asymmetries in the Eurozone and enlarged EU over the period 1992-2007, and their consequences for monetary policy. Our results reveal that in the Eurozone output asymmetry has remained practically unaltered; however, there is some...

The impact of budget deficits on private investment is an unsettled issue. If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect. On...

The impact of budget deficits on private investment is an unsettled issue. If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect. On...

Currency depreciation is said to worsen the trade balance first before resulting in an improvement, yielding a short-run pattern labelled the J-curve phenomenon. While early studies tested the J-curve by using aggregate trade data, a few recent studies have employed bilateral data, mostly...

The cointegration technique is now a common method of estimating any money demand function. Numerous studies that applied this technique to estimate the money demand function in Greece, interpreted their finding of cointegration as a sign of stable money demand. In this paper, after...

This paper studies the effects of spatial concentration of innovation activity on local production of patents in the US. In doing so, we augment the standard knowledge production function with a structure that allows for spatial effects, accounting along with bilateral also for multilateral...

Previous studies that investigated the export led growth hypothesis, relied upon Granger or Sims causality detection approach. Since these approaches employ first differenced variables, any inference could be short-run in nature. In this paper we consider the relation between exports and...

The authors examine the effect of trade on productivity growth using data from nine manufacturing industries across 12 OECD countries over the period 1978-97. Because causality between productivity growth and trade share runs both ways, geographical characteristics of countries are used to...

This paper studies the relationship between government sponsorship and nature of innovation produced by US universities and corporations. Using detailed patent data information and, in particular, from the patent document wrapper, where the applicant is obliged to disclose any federal support,...

Purpose – To avoid aggregation bias by using trade data at bilateral level so that we can determine how sensitive are Britain's inpayments and outpayments to the value of the British pound. Design/methodology/approach – The method is based on the bounds testing approach to cointegration and...