Is There Endogenous Long-Run Growth? Evidence Based on an Error Correction Model

S.-H. P. Lau

Working Papers from Michigan State - Econometrics and Economic Theory

Abstract: A major empirical interest in growth studies is whether a permanent change in economic fundamentals affects the long-run growth rate. However, a direct time series analysis of this hypothesis may not always be feasible because the permanence of many such changes is rather questionable. This paper explains why testing the long-run effect of a temporary change in investment share per capita output provides indirectly the answer regarding the effect of a (possibly hypothetical) permanent change in investments share, when output and investment are cointegrated.

Keywords: ECONOMIC MODELS; ECONOMIC GROWTH; INVESTMENTS (search for similar items in EconPapers)
JEL-codes: E22 O40 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1999
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:mistet:9900

Access Statistics for this paper

More papers in Working Papers from Michigan State - Econometrics and Economic Theory MICHIGAN STATE UNIVERSITY, DEPARTMENT OF ECONOMICS, EAST LANSING MICHIGAN 48824 U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().