This study proposed a new analytical approach to identify the excessive comovement of two markets as contagion. This goal is achieved by linking latent-factor and single-equation error correction models and evaluating the breaks in the short- and long-term relationships and correlatedness in the...

Purpose - The paper aims to examine the impact of social capital on the size of the shadow economy in the BIRCS countries over the period 1995–2014. Design/methodology/approach - The authors employ the Bayesian linear regression method to uncover the relationship between social capital and the...