Barro and Sala-I-Martin empirical framework of neoclassical Solow-Swan model is specified to determine the FDI impact on per capita growth in 74 Russian regions during period of 1996-2003. The Arellano-Bond GMM-DIFF methodology, developed for dynamic panel data models, is used in estimations....

A framework based on a linear deterministic trend function is introduced in order to model growth convergence. The approach is a practical solution to the nonlinearity and nonstationarity found in the convergence of output-per-capita gaps between the USA and 14 OECD countries in 1946-1997....

Four alternative tests for nonstationarity and stationarity are analysed in detail for a typical macro-economic time series. The analysed tests (ADF, LMSP, KPSS and G(p, q) tests) are asymptotical tests for the type of process considered. The small sample simulations reveal that the empirical...

The appropriateness of the Dickey-Fuller unit root test is studied using two alternative unit root test models. The segmented trend model is strongly supported and the second-order trend model is favoured for some series. The sample set consists of observations of nine basic macroeconomic time...

The small sample properties of the cointegrated labour demand models are studied with some Monte Carlo experiments. The results indicate that the Engle-Granger two-step estimation procedure gives biased OLS-estimates in small samples for the cointegrated vector and the error correction...

Enterprises in post-socialist and transition economies often participate in providing infrastructure and social services to the surrounding community. We argue that this bundling of social and infrastructure goods provision with an enterprise’s core operations is a fully rational choice in an...

The "shock persistence" of Finnish adjusted quarterly real GNP series in logarithms from 1954:1 to 1990:4 is analyzed using variance ratio estimators. The results indicate that the random walk component of the series is not big. The small sample properties of variance ratio estimators are...

Minimum Absolute Deviation (MAD) estimation method is used to examine weekday anomaly in 18 international stock exchanges between 1990 and 2003. Weekday return anomaly is found with OLS method in two and with MAD method in eight stock exchanges. Empirical test distributions of F -type test for...

The Laplace mixture distribution for stock share returns is derived from conditional N(0, sigma-squared) distribution. The conditioning variable, sigma-squared, is assumed to be an exponentially distributed random variable. This offers a natural stochastic interpretation of the risk involved...