Cointegration modeling of interrelated factor demands : with an application to labor-import substitution in the European Union / by Efthymios G. Tsionas, and Dimitris K. Christopoulos.
Material type: TextSeries: Discussion paper series (Οικονομικό Πανεπιστήμιο Αθηνών. Τμήμα Οικονομικών Επιστημών) ; No 146.Publication details: Athens : Department of Economics, Athens University of Economics and Business, 2002Description: 22 p. : ill 30 cmSubject(s): Cointegration | Error correction | Dynamic sur | Interrelated factor demands | Dynamic adjustmentSummary: In this paper we present techniques for cointegration modeling of interrelated factor demands. These techniques respect the non-stationary character of the price and quantity data, and permit specification of general, dynamic factor demand models based on error correction forms derived from cointegration. Therefore, we do not have to assume ad hoc dynamic forms. Moreover, we ensure that estimated relations are structural, and not spurious. Cointegrating vectors are estimated subject to all standard economic theory restrictions by using a procedure, which we call dynamic SUR. We show how consistent error correction models can be specified and estimated. In addition, we test the neoclassical restrictions both in the short- and the long run. The new methods are used to shed light on the major problem of the European Union (unemployment) and its relationship with imports. The empirical analysis is conducted for five countries of the European Union with an emphasis to the south: The UK, France, Greece, Italy, and Spain.Item type | Current library | Collection | Call number | Copy number | Status | Date due | Barcode |
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Book | University of Macedonia Library Βιβλιοστάσιο Β (Stack Room B) | Research Papers | HC10.O456 no.146 2002 (Browse shelf (Opens below)) | 1 | Available | 0013083387 |
In this paper we present techniques for cointegration modeling of interrelated factor demands. These techniques respect the non-stationary character of the price and quantity data, and permit specification of general, dynamic factor demand models based on error correction forms derived from cointegration. Therefore, we do not have to assume ad hoc dynamic forms. Moreover, we ensure that estimated relations are structural, and not spurious. Cointegrating vectors are estimated subject to all standard economic theory restrictions by using a procedure, which we call dynamic SUR. We show how consistent error correction models can be specified and estimated. In addition, we test the neoclassical restrictions both in the short- and the long run. The new methods are used to shed light on the major problem of the European Union (unemployment) and its relationship with imports. The empirical analysis is conducted for five countries of the European Union with an emphasis to the south: The UK, France, Greece, Italy, and Spain.
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