2017, Volume 70 - Issue 4
RSS feed citation: At RePEc
Publication date: 20 October 2017
INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALYRead the article
FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACHRead the article
IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIARead the article
REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACHRead the article
Dimitris KIRIKOS, University of Applied Sciences Crete (TEI Crete), Department of Accounting and Finance, Heraklion Greece and Hellenic Open University, Greece
The anemic recovery of advanced economies, after eight years into the great recession, has recently been attributed to the persistent slump in demand and its effects on long-run growth rates through hysteresis effects. If adverse secular trends are at work, then the data should show that the long-run growth rate has shifted to a lower level. Hence, using a simple Markov switching regimes model, we investigate whether the growth rate of potential GDP has exhibited a persistent switch, based on OECD data for nine economies over the period 1990-2017. It turns out that, in all cases, potential GDP growth is characterized by switching dynamics and this provides necessary evidence that secular stagnation cannot be ruled out empirically.
Secular Stagnation, Switching Regimes, Long-Run Growth
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