An Empirical Analysis of a Reaction-Function Approach to Policymaking in Greece during 1975-1993
This paper examines the extent to which the policy instruments of money supply and budget deficit were endoigenous in Greece over the period 1975-1993. It is assumed that the policymaker's objectives are the growth rate of GNP and the balance of payments. The so-called "reaction-function approach" to the interdependence of economy and policy is utilised for this purpose. The empirical analysis is made in terms of a maximum likelihood methodology that reconciles co integration with optimal control techniques. It suggests that only the money-supply instrument has been endogenous in an effort to promote growth and prevent balance-of-trade deterioration.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:i:y:1998:i:3:p:51-69. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Giannakopoulou)
If references are entirely missing, you can add them using this form.