Okun's law, cointegration and gap variables

Article Abstract:

An analysis of Okun's model of the empirical relationship between unemployment and output showed that Okun's coefficient can be interpreted as the cointegration coefficient between the two variables. This is due to the action of the Beveridge and Nelson decomposition on the variables which would allows the data to follow a time series analysis of macroeconomic variables. This is true only if potential output and unemployment are treated as permanent or trend components of the variables in the decomposition treatment.

Models, Unemployment, Economic indicators, Industrial productivity

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An empirical analysis of the output effects of temporary and persistent government purchases

Article Abstract:

Medium-run and persistent changes associated with overall government purchase growth tend to create greater impact on output growth than temporary changes. Medium-run changes with 6 to 11-year nondefense cyclical period are highly substantial with regards to coefficient estimate size and t-value. Medium-run changes with cyclical period of 6 to 8 years are highly significant when it comes to defense purchases.

Government Purchases, Economic aspects, Expenditures, Public, Public expenditures, Government purchasing

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External debt and Ponzi-games in a small open economy with endogenous growth

Article Abstract:

The impact of external government borrowing was studied under a small open economy with endogenous growth. The presence of Ponzi-games in government borrowings proved to be advantageous to welfare since such games resulted to lower capital over-accumulation. Improvement in welfare for all generations was also noted provided that government debt stock grows slower than the economy.

Research, External debts, Pyramid schemes

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