Search results for "unit roots"
showing 3 items of 3 documents
Is the environmental performance of industrialized countries converging? A ‘SURE’ approach to testing for convergence
2008
In this paper, we test for convergence in the environmental performance of a sample of OECD countries, with data ranging from 1971 to 2002. First, we use Data Envelopment Analysis (DEA) to compute two environmental performance indicators (EPIs) in the production theory framework. Second, we propose the use of a sequential multivariate approach to test for convergence in environmental performance. These tests allow us to reconcile the time series literature with the cross-sectional dimension, which is basic when testing for convergence in regional blocs. The SURE technique is used, which allows for the existence of correlations across the series without imposing a common speed of mean revers…
50 years of capital mobility in the eurozone: breaking the Feldstein-Horioka puzzle
2021
AbstractThis paper assesses capital mobility for the Eurozone countries by studying the long-run relationship between domestic investment and savings for the period 1970-2019. Our main goal is to analyze the impact of economic events on capital mobility during this period. We apply the cointegration methodology in a setting that allows us to identify endogenous breaks in the long-run saving-investment relationship. Precisely, the breaks coincide with relevant economic events. We find a downward trend in the saving-investment retention since the 70s for the so-called “core countries”, whereas this trend is not so evident in the peripheral, where the financial and sovereign crises have had a …
Persistence in Italian rate of Unemployment in presence of breaks and regional asymmetries
2006
This work aims to test the persistence of Italian unemployment rate during last fifty years. To this scope we find evidences of a unit root, also when we allow for the presence of structural shifts so that the level of unemployment has a path dependant behaviour. Secondly, we test a possible explanation of the persistence through the presence of cointegration relationships with some institutional labour market variables, such as the union membership. Thirdly, there are asymmetric macroregional behaviours so that the great bulk of persistence is given by Center – Southern unemployment. It implies that changes in unemployment level have longer duration in the poorest part of the country.