This paper explores the effects of currency substitution behavior in Greece, Portugal and Spain in light of their upcoming participation in the European monetary Union. The cointegration methodology adopted leads to an error-correction model for each country which allows us to separate the...

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 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,...