Economic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development...

The present financial and economic crisis has revealed a systemic failure of academic economics and emphasized the need to re-think how to model economic phenomena. Lawson (2009) seems concerned that critics of standard models now will fill academic journals with contributions that make the same...

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system (A,K,C, Sigma) determines a vector autoregression for observables available to an econometrician. We...

Using structural time series models, Cuevas estimates common stochastic trends of real GDP and imports in Venezuela from 1974-2000. The real imports trend drifts upward at almost twice the rate of growth of GDP. This highlights the powerful structural tendency toward increasing imports in...

Money demand in Venezuela is modeled using structural time series and error correction approaches, for the period 1993.1 to 2001.4. The preferred model features seasonal cointegration and was estimated following a structural time series approach. There are similarities in the long-run behavior...

Using nonlinearity testing and modeling associated with the smooth transition regression model we examine how the choice of aggregate demand proxy affects, if at all, the nonlinearity of the Phillips curve. The three proxies we examine are the unemployment rate, output gap, and real unit labor...

Using nonlinearity testing and modeling associated with the smooth transition regression model we examine how the choice of aggregate demand proxy affects, if at all, the nonlinearity of the Phillips curve. The three proxies we examine are the unemployment rate, output gap, and real unit labor...

We present new theoretical approaches to exchange rate determination and stock market price dynamics as well as first empirical results for selected transition countries. The exchange rate is considered as reflecting both the interest parity - with a specific formulation for exchange rate...

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system (A,K,C, Sigma) determines a vector autoregression for observables available to an econometrician. We...

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system (A,K,C,Sigma) determines a vector autoregression for observables available to an econometrician. We review...