scholarly journals Panel Cointegration Estimates of the Effect of Interest Rates, Capital Goods Prices, and Taxes on the Capital Stock

2006 ◽  
Author(s):  
Huntley Schaller ◽  
Marcel C. Voia
Keyword(s):  
Interest Rates ◽  
Capital Stock ◽  
Panel Cointegration ◽  
Capital Goods

scholarly journals Asymmetric Macroeconomic Shocks and Asset Price Behaviors in Selected African Countries

2021 ◽  
Vol 11 (2) ◽  
pp. 90
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Ogunleye Edward Oladipo
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Asset Prices ◽  
Asset Price ◽  
Panel Cointegration ◽  
African Countries ◽  
Vector Autoregressive ◽  
Macroeconomic Variables ◽  
Real Estate Prices ◽  
The Relationship

This study examines the relationship between Asset prices (Stock and Real estate prices) and Macroeconomic variables in four selected African countries. The study employs the Westerlund Error Correction Based Panel Cointegration test and Eight-variable Structural Vector Autoregressive model to examine the relationship between asset prices and macroeconomic variables. Findings from the study confirm that no long-run relationship exists between both Asset prices and macroeconomic variables. The study equally reveals that portfolio diversification benefits of both stock and real estate markets are more pronounced in the period of a boom than the recession period in Africa. The results also show that GDP growth rate shock exerts a significant impact on both asset prices during expansion and recession periods. The study reveals that foreign interest rates and World oil price shocks are better predictors of both stock and real estate prices during the crisis period than in the expansion period.

scholarly journals Neoclassical versus Kaldorian explanations of Southern Europe’s productivity slowdown

2017 ◽  
Vol 67 (s1) ◽  
pp. 113-135 ◽  
Author(s):  
Alberto Bagnai ◽  
Christian Alexander Mongeau Ospina
Keyword(s):  
Side Effects ◽  
Interest Rates ◽  
Financial Integration ◽  
Adam Smith ◽  
Panel Cointegration ◽  
Productivity Slowdown ◽  
Level Data ◽  
Low Interest Rates ◽  
Capital Misallocation ◽  
Industry Level Data

The productivity slowdown in European countries is among the major stylised facts of the last two decades. Several explanations have been proposed: some focus on demand-side effects, working through Kaldor’s second law of economic growth (also known as Verdoorn’s law), others on supply-side effects determined by a misallocation of the factors of production, caused either by labour market reforms or by perverse effects of financial integration (in Europe, related to the adoption of the euro). The latter explanation is put forward by some recent studies that stress how low interest rates brought about by the monetary union may have lowered productivity by inducing capital misallocation. The aim of this paper is to investigate the robustness of the latter empirical findings and to compare them with the alternative explanation offered by the post-Keynesian growth model, which instead emphasises the relation between foreign trade and productivity, along lines that go back to Adam Smith. To do so, we use a panel of industry-level data extracted from the EU KLEMS database, comparing these alternative explanations by panel cointegration techniques. The results shed some light on the role played by the single currency in the structural divergences among euro area member countries.

scholarly journals User Costs versus Waiting Services and Depreciation in a Model of Production

2010 ◽  
Vol 230 (6) ◽  
Author(s):  
W.Erwin Diewert
Keyword(s):  
Capital Stock ◽  
General Model ◽  
Cost Of Capital ◽  
User Cost ◽  
Capital Goods ◽  
User Costs ◽  
Resource Requirements ◽  
The One ◽  
Investment Goods ◽  
Period Model

SummaryThe paper develops an extension of a one period model of production involving beginning and end of the period capital stocks along with output and input flows that is due to Hicks and Edwards and Bell. This generalized Austrian model of production takes into account that end of the period capital stocks result from: (i) purchases of new investment goods; (ii) internal construction of firm capital stock components and (iii) holdings of (depreciated) capital goods that were held by the firm at the beginning of the period. These different methods of creating end of period holdings of capital stocks generally have different resource requirements and hence the one period production possibilities set is more complex than the usual one. This general model of production is used to justify the decomposition of the Jorgensonian user cost of capital into separate waiting services and depreciation components.

scholarly journals A Paridade Descoberta das Taxas de Juros nos Mercados de Moedas Estrangeiras (FX)

2004 ◽  
Vol 2 (2) ◽  
pp. 137
Author(s):  
Joe Akira Yoshino ◽  
Silvio Ricardo Micheloto
Keyword(s):  
Developing Countries ◽  
Emerging Markets ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Panel Cointegration ◽  
Uncovered Interest Parity ◽  
Spurious Regression ◽  
Forward Premium ◽  
Dynamic Ols ◽  
Premium Puzzle

This work verifies the uncovered interest rates parity (UIP) in the FX (foreign exchange) emerging markets by using the panel cointegration technique. The data involves several developing countries that compose the EMBI+ Global Index. We compare the results of several panel estimators: OLS (ordinary list square), DOLS (dynamic OLS) and FMOLS (fully modified OLS). This new panel technique can handle problems of either non-stationary series (spurious regression) or small problem. This latter problem has being considered one of the main causes for distorting the UIP empirical results. By using this approach, we check the UIP in the FX (foreign exchange) emerging markets. These markets are more critical because they have been subjected to changing FX regimes and speculative attacks. Our results do not corroborate the uncovered interest parity for the developing countries in the recent years. Thus, the forward premium puzzle may hold in the FX emergent markets.

scholarly journals PENERAPAN AKUNTANSI PERPAJAKAN ATAS KEPEMILIKAN AKTIVA KENDARAAN DENGAN METODE SEWA PEMBIAYAAN PADA CV. KARYA WENANG

2013 ◽  
Vol 8 (4) ◽  
Author(s):  
Stephany Florence Claudia ◽  
Grace Mogi Nangoi ◽  
Heince Wokas
Keyword(s):  
Capital Stock ◽  
Bank Loans ◽  
Capital Goods ◽  
Alternative Sources ◽  
Commercial Accounting ◽  
Retained Earnings ◽  
Descriptive Method ◽  
Stock Issuance

To fund the business activities especially for the procurement of capital goods, the company has alternative sources of financing in the corporate and finance sourced from outside the company. Funding is sourced from within the company including the capital stock, issuance of bonds, and retained earnings. While the funding is sourced from outside the company such as bank loans and leasing. For companies that not have enough capital, the alternative is often used outside financing companies that finance leases/capital lease. The purpose of this study is to investigate the application of accounting taxation on the ownership of assets by the method of vehicle financing lease ( capital lease ) on the CV. Karya Wenang. The method used in this research is descriptive method. The results of the study on the CV. Karya Wenang is the CV Karya Wenang not fully implement the accounting taxation of finance lease transactions that do. As in the case of depreciation, the company still apply to commercial accounting

Did High Wages or High Interest Rates Bring Down the Weimar Republic? A Cointegration Model of Investment in Germany, 1925–1930

1995 ◽  
Vol 55 (4) ◽  
pp. 801-821 ◽  
Author(s):  
Hans-Joachim Voth
Keyword(s):  
Interest Rates ◽  
Interwar Period ◽  
Weimar Republic ◽  
Capital Stock ◽  
Cost Of Capital ◽  
State Intervention ◽  
Low Level ◽  
High Interest ◽  
Slow Expansion ◽  
New Interpretation

This article offers a new interpretation of the low level of investment in Germany during the interwar period. Earlier contributions attributed the slow expansion of capital stock either to excessive wages due to state intervention and unionization or to the high cost of capital. These hypotheses are tested by estimating a cointegration model of investment. Counterfactual simulations demonstrate that lower wages would have lowered investment still further and that high interest rates acted as the main brake on investment during the second half of the 1920s.

FINANCIAL INTERMEDIATION AND AGGREGATE FLUCTUATIONS: A QUANTITATIVE ANALYSIS

2000 ◽  
Vol 4 (4) ◽  
pp. 423-447 ◽  
Author(s):  
Russell Cooper ◽  
João Ejarque
Keyword(s):  
Quantitative Analysis ◽  
Business Cycle ◽  
Interest Rates ◽  
Capital Stock ◽  
Convincing Evidence ◽  
Aggregate Fluctuations ◽  
Productivity Shocks ◽  
The Real ◽  
Real Shocks ◽  
The U.S

We investigate the quantitative behavior of business-cycle models in which the intermediation process acts either as a source of fluctuations or as a propagator of real shocks. In neither case do we find convincing evidence that the intermediation process is an important element of aggregate fluctuations. For an economy driven by intermediation shocks, consumption is not smoother than output, investment is negatively correlated with output, variations in the capital stock are quite large, and interest rates are procyclical. The model economy thus fails to match unconditional moments for the U.S. economy. We also structurally estimate parameters of a model economy in which intermediation and productivity shocks are present, allowing for the intermediation process to propagate the real shock. The unconditional correlations are closer to those observed only when the intermediation shock is relatively unimportant.

scholarly journals FDI and Domestic Investment: An Industry-Level View

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Christian Arndt ◽  
Claudia M Buch ◽  
Monika E Schnitzer
Keyword(s):  
Capital Stock ◽  
Empirical Work ◽  
Panel Cointegration ◽  
Domestic Investment ◽  
Industry Level ◽  
Long Run ◽  
Domestic Capital ◽  
Level Data ◽  
Level Of Aggregation ◽  
The Impact

Abstract Previous empirical work on the link between domestic and foreign investment has provided mixed results. This may partly be due to the level of aggregation of the data. In this paper, we argue that the impact of FDI on the domestic capital stock depends on the structure of industries. Using industry-level data on the stock of German FDI, we test our predictions. We use panel cointegration methods which address the potential endogeneity of FDI. We find evidence for a positive long-run impact of FDI on the domestic capital stock.

Thailand

2021 ◽  
pp. 93-126
Author(s):  
Richard F. Doner ◽  
Gregory W Noble ◽  
John Ravenhill
Keyword(s):  
Product Design ◽  
Foreign Exchange ◽  
Capital Stock ◽  
Scale Economies ◽  
Primary Case ◽  
Capital Goods ◽  
Domestic Firms ◽  
Excise Taxes ◽  
Policy Interventions ◽  
Automotive Assembly

Thailand is our primary case of successful extensive development. The impressive volume of Thai-based automotive assembly and vehicle and parts exports, the largest in the ASEAN region, reflects a highly efficient assembly base, dominated by foreign assemblers and component producers and driven largely by growth of capital stock rather than by indigenous productivity. This trajectory has been the result of deliberate policy interventions, such as automotive FDI incentives, excise taxes and tariffs designed to promote scale economies, and cluster-related infrastructure. These policies have been formulated and implemented by relatively cohesive institutional networks motivated by broader economic concerns, especially foreign exchange problems. Yet those same factors have not resulted in intensive growth: a manufacturing complex based at least in part on domestic firms producing parts and components, providing intermediate and capital goods, improving processes, and participating in product design.

Consumption, personal income, financial wealth, housing wealth, and long-term interest rates: a panel cointegration approach for 50 US states

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Dimitra Kontana ◽  
Stilianos Fountas
Keyword(s):  
Interest Rates ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Housing Wealth ◽  
Cross Sectional ◽  
Us States ◽  
Financial Wealth ◽  
Long Run ◽  
Short Run

Abstract This study investigates the long-run and short-run relationship between consumption, income, financial and housing wealth, and a long-term interest rate for the 50 US states. Using an updated set of quarterly data from 1975 to 2018, we perform panel cointegration analysis allowing for cross-sectional dependence. We obtain the following results. First, there is strong evidence for cointegration among consumption and its determinants. Second, estimates of the housing wealth and financial wealth elasticity of consumption range from 0.072 to 0.115 and 0.044 to 0.080, respectively. Finally, Granger causality tests show that there is a bidirectional short-term causality between per capita consumption, income, and financial wealth in the short run and between all the variables in the long run.

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