Contents of the volume

2020, Volume 73 - Issue 3

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 17 August 2020

HOW TO REFORM THE EU AND THE EMU

Nicola Acocella

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STRUCTURAL REFORMS IN THE EUROPEAN UNION: WHAT IS NEW AFTER THE CRISIS?

Luciano Marcello Milone

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EXCHANGE RATE VOLATILITY AND ITS IMPACT ON CHINA'S TRADE WITH THE UNITED STATES

Kamal Upadhyaya, Rabindra BHANDARI, Franklin G. JR. MIXON

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ASYMMETRIC PANEL CAUSALITY TESTS WITH AN APPLICATION TO THE IMPACT OF FISCAL POLICY ON ECONOMIC PERFORMANCE IN SCANDINAVIA

Abdulnasser Hatemi-J

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REAL ESTATE MARKET AND MACROECONOMIC FACTORS IN KUWAIT: AN ARDL APPROACH

Sadeq Abul, Ahmad M. AL-KANDARI

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Abdulnasser HATEMI-J, Department of Accounting and Finance, College of Business and Economics, UAE University, Al Ain, The United Arab Emirates

Asymmetric Panel Causality Tests with an Application to the Impact of Fiscal Policy on Economic Performance in Scandinavia

Pages

389-404

Abstract

Tests for conducting asymmetric Granger causality within a panel system are introduced in this paper. It is shown how the cumulative sums of negative and positive shocks can be constructed to investigate whether the potential causal effects of these shocks are asymmetrical or not within a panel system. These tests can be based on asymptotic or bootstrap distributions. In addition, a test for efficiency gains of the suggested estimation method is introduced. An information criterion is also provided for selecting the optimal lag order in the autoregressive panel model. The suggested methods are applied to assess the impact of contractionary as well as expansionary fiscal policy on the economic performance of the three Scandinavian countries. The results show that allowing for asymmetry in the panel causality testing has important repercussions for the underlying causal inference.

JEL classification

C33, H21, H26

Keywords

Asymmetric Causality, Panel, Fiscal Policy, Scandinavia

Index

  1. Introduction
  2. Asymmetric panel causality testing
  3. A new test statistic for efficiency games
  4. An application
  5. Concluding points

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