AK growth models: new evidence based on fractional integration and breaking trends
AbstractAccording to AK growth models, permanent changes in investment rates have permanent effects on a countryâs rate of economic growth. Jones (Quarterly Journal of Economics, 1995, 110, 495-525) finds strong evidence against this prediction studying the time series properties of GDP growth rates and investment output ratios in fifteen OECD countries for the period 1950-1988. In this paper, we test the same hypothesis in four OECD countries using a longer span of data (1870-2002 for Canada, the UK and the US and 1885-2002 for Japan). Moreover, instead of using classic approaches, which are based on stationary I (0) or unit roots I (1) processes, we use methodologies based on fractional integration. After examining the order of integration of GDP growth rates and non-residential investment rations for these countries, we do not find much evidence against the âgrowth effectsâ prediction of AK models. In fact, we only find clear evidence against this theory for the UK case.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 75 (2009)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
growth models; fractional integration;
Other versions of this item:
- Juncal Cunado & Luis A. Gil-Alana & Fernando Perez de Garcia, 2009. "AK growth models: new evidence based on fractional integration and breaking trends," Discussion Papers (REL - Recherches Economiques de Louvain) 2009021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Echevarría, Cruz A., 2012. "Income tax progressivity, physical capital, aggregate uncertainty and long-run growth in an OLG economy," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 955-974.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.