This study investigates the long run relationship between government size and unemployment rate, the Abrams curve, using ten European countries over the period 1961-1999. To this end, panel cointegration analysis and estimation techniques appropriate for heterogeneous panels are made use of. The...

This paper investigates the Abrams curve, that is the relationship between government size and unemployment, for 10 European countries over the period 1961-1999. This paper uses credible causality inferences that do not depend on the stationarity or cointegration properties of the data. The...

In this paper, we apply panel cointegration tests and estimation techniques to obtain efficiency measures when it is uncertain whether the underlying technological relationship is structural or spurious due to possible non-stationarity of the data. We illustrate the dangers of efficiency...

The paper reassesses the empirical evidence for Thirlwall's law in seven industrial countries by using panel unit root and panel cointegration tests including Johansen maximum likelihood cointegration tests. Current practice restricts attention to time series residual based cointegration tests,...

In this paper we investigate the productivity growth – inflation nexus in fifteen European countries over the period 1961–1999 using panel unit root and panel cointegration tests. Emphasis is placed on the distinction between long-run and short-run causality using recently developed tests...

We study the effect of technology gaps and capital deepening on the productivity growth of Greek prefectures over the period 1971-1995. The empirical results show that Greek prefectures tended to converge over time, contrary to conventional wisdom. It is found that capital deepening plays a...

The paper examines whether inflation systematically distorts the informational content of price signals. A shadow cost function is specified, and the deviation of shadow from actual prices is modeled as a function of the level of economy-wide inflation, as well as other conditioning variables...