TY - UNPB
T1 - Nonlinearities and Parameter Instability in the Finance-Growth Nexus
AU - Prettner, Catherine
PY - 2016/5/1
Y1 - 2016/5/1
N2 - This paper offers a re-assessment of the finance-growth nexus in a framework that allows to distinguish between short-run versus long-run effects. Our dataset contains information on 45 developed and developing countries over the period 1995-2011. We make use of the integration and cointegration properties of the data, establish a cointegrating relation and derive the long-run elasticities of per capita GDP with respect to employment, the physical capital stock, and financial development. We employ these results to specify an error correction model and assess whether the years of crisis have changed the relationship between finance and growth. (author's abstract)
AB - This paper offers a re-assessment of the finance-growth nexus in a framework that allows to distinguish between short-run versus long-run effects. Our dataset contains information on 45 developed and developing countries over the period 1995-2011. We make use of the integration and cointegration properties of the data, establish a cointegrating relation and derive the long-run elasticities of per capita GDP with respect to employment, the physical capital stock, and financial development. We employ these results to specify an error correction model and assess whether the years of crisis have changed the relationship between finance and growth. (author's abstract)
UR - https://www.wu.ac.at/economics/forschung/wp/
U2 - 10.57938/4d9ff12e-8b48-4644-a5e0-19529215e8ff
DO - 10.57938/4d9ff12e-8b48-4644-a5e0-19529215e8ff
M3 - WU Working Paper
T3 - Department of Economics Working Paper Series
BT - Nonlinearities and Parameter Instability in the Finance-Growth Nexus
PB - WU Vienna University of Economics and Business
CY - Vienna
ER -