Using data spanning 200 years we examine the nature of the long-run cointegrating behaviour between real output and real stock prices. A standard cointegration framework demonstrates that such a long-run relationship exists with both variables exhibiting significant equilibrium reversion, albeit...

The debate regarding rising temperatures and CO2 emissions has attracted the attention of economists employing recent econometric techniques. This paper extends that literature through using a dataset that covers 800,000 years, as well as a shorter dataset, and examines the interaction between...

Persistence in economic variables is common. We re-examine that using a time-varying parameter model. Results support a substantial reduction in persistence, particularly, when allowing for time-variation in the constant. This has important implications for policy-making and the effect of shocks.