This paper explores the implications of military and nonmilitary government expenditures on gross private investment. The empirical investigation of the issue is carried out via cointegration and error-correction analyses. The second type of public spending is disaggregated into infrastructure,...

We address the dynamic linkages between stock prices and economic fundamentals for the period 1990-2009 for France, Germany, Italy, the UK and the US using the rolling-sample cointegration technique and VAR specifications. The empirical analysis is done for the pre- and post-Euro subperiods. In...

This paper examines the dynamic interactions among the equity market, economic activity, inflation, and monetary policy under three monetary policy regimes using bivariate and multivariate vector autoregressive cointegrating specifications. The bivariate results for the real stock...

Purpose - The purpose of this paper is to re-examine the relationship between real investment and stock prices for the USA for 1960-2005 in view of distinct economic regimes during the 40-year period. Design/methodology/approach - The paper employs simple models of investment, checks for...

Purpose The purpose of this paper is to re-examine the relationship between a country’s aggregate stock market and general economic development for 14 emerging economies for the period from 1995 to 2014. Design/methodology/approach The methodological approach of the paper is multifold. First,...

This paper investigates the issue of whether financial market liberalization announcements in emerging economies have had any effects on the efficient operation of their equity markets. The issue is empirically examined in the case of Greece, and its emerging stock market, the Athens Stock...