Testing the externalities hypothesis of endogenous growth using cointegration
Autor(a) principal: | |
---|---|
Data de Publicação: | 1994 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/751 |
Resumo: | The initial endogenous growth models emphasized the importance of externaI effects in explaining sustainable growth across time. Empirically, this hypothesis can be confirmed if the coefficient of physical capital per hour is unity in the aggregate production function. Although cross-section results concur with theory, previous estimates using time series data rejected this hypothesis, showing a small coefficient far from unity. It seems that the problem lies not with the theory but with the techniques employed, which are unable to capture low frequency movements in high frequency data. This paper uses cointegration - a technique designed to capture the existence of long-run relationships in multivariate time series - to test the externalities hypothesis of endogenous growth. The results confirm the theory' and conform to previous cross-section estimates. We show that there is long-run proportionality between output per hour and a measure of capital per hour. U sing this result, we confmn the hypothesis that the implied Solow residual can be explained by government expenditures on infra-structure, which suggests a supply side role for government affecting productivity and a decrease on the extent that the Solow residual explains the variation of output. |
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Issler, João VictorFerreira, Pedro CavalcantiEscolas::EPGEFGV2008-05-13T15:32:49Z2008-05-13T15:32:49Z1994-040104-8910http://hdl.handle.net/10438/751The initial endogenous growth models emphasized the importance of externaI effects in explaining sustainable growth across time. Empirically, this hypothesis can be confirmed if the coefficient of physical capital per hour is unity in the aggregate production function. Although cross-section results concur with theory, previous estimates using time series data rejected this hypothesis, showing a small coefficient far from unity. It seems that the problem lies not with the theory but with the techniques employed, which are unable to capture low frequency movements in high frequency data. This paper uses cointegration - a technique designed to capture the existence of long-run relationships in multivariate time series - to test the externalities hypothesis of endogenous growth. The results confirm the theory' and conform to previous cross-section estimates. We show that there is long-run proportionality between output per hour and a measure of capital per hour. U sing this result, we confmn the hypothesis that the implied Solow residual can be explained by government expenditures on infra-structure, which suggests a supply side role for government affecting productivity and a decrease on the extent that the Solow residual explains the variation of output.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;236Todo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessTesting the externalities hypothesis of endogenous growth using cointegrationinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaDesenvolvimento econômicoModelos econômicosExternalidades (Economia)Economiareponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL000061935.pdf000061935.pdfapplication/pdf1220314https://repositorio.fgv.br/bitstreams/923c6ee9-fe6e-4213-8c86-9010b958e2e6/downloadcd5c4a2d4c570bfdde447c3784b3e238MD51TEXT000061935.pdf.txt000061935.pdf.txtExtracted texttext/plain62701https://repositorio.fgv.br/bitstreams/63898ea8-6562-4f5b-bdbb-910259acd788/download4dbaeedb83f325e7e8f6530aa295fc2fMD56THUMBNAIL000061935.pdf.jpg000061935.pdf.jpgGenerated Thumbnailimage/jpeg2188https://repositorio.fgv.br/bitstreams/4157667a-3a6b-43af-a0e5-e8fa39eb9e61/download025916b0541ed7468797cbe8b0a84088MD5710438/7512023-11-09 20:41:46.357open.accessoai:repositorio.fgv.br:10438/751https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T20:41:46Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
Testing the externalities hypothesis of endogenous growth using cointegration |
title |
Testing the externalities hypothesis of endogenous growth using cointegration |
spellingShingle |
Testing the externalities hypothesis of endogenous growth using cointegration Issler, João Victor Economia Desenvolvimento econômico Modelos econômicos Externalidades (Economia) Economia |
title_short |
Testing the externalities hypothesis of endogenous growth using cointegration |
title_full |
Testing the externalities hypothesis of endogenous growth using cointegration |
title_fullStr |
Testing the externalities hypothesis of endogenous growth using cointegration |
title_full_unstemmed |
Testing the externalities hypothesis of endogenous growth using cointegration |
title_sort |
Testing the externalities hypothesis of endogenous growth using cointegration |
author |
Issler, João Victor |
author_facet |
Issler, João Victor Ferreira, Pedro Cavalcanti |
author_role |
author |
author2 |
Ferreira, Pedro Cavalcanti |
author2_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Issler, João Victor Ferreira, Pedro Cavalcanti |
dc.subject.area.por.fl_str_mv |
Economia |
topic |
Economia Desenvolvimento econômico Modelos econômicos Externalidades (Economia) Economia |
dc.subject.bibliodata.por.fl_str_mv |
Desenvolvimento econômico Modelos econômicos Externalidades (Economia) Economia |
description |
The initial endogenous growth models emphasized the importance of externaI effects in explaining sustainable growth across time. Empirically, this hypothesis can be confirmed if the coefficient of physical capital per hour is unity in the aggregate production function. Although cross-section results concur with theory, previous estimates using time series data rejected this hypothesis, showing a small coefficient far from unity. It seems that the problem lies not with the theory but with the techniques employed, which are unable to capture low frequency movements in high frequency data. This paper uses cointegration - a technique designed to capture the existence of long-run relationships in multivariate time series - to test the externalities hypothesis of endogenous growth. The results confirm the theory' and conform to previous cross-section estimates. We show that there is long-run proportionality between output per hour and a measure of capital per hour. U sing this result, we confmn the hypothesis that the implied Solow residual can be explained by government expenditures on infra-structure, which suggests a supply side role for government affecting productivity and a decrease on the extent that the Solow residual explains the variation of output. |
publishDate |
1994 |
dc.date.issued.fl_str_mv |
1994-04 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:32:49Z |
dc.date.available.fl_str_mv |
2008-05-13T15:32:49Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
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publishedVersion |
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http://hdl.handle.net/10438/751 |
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0104-8910 |
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0104-8910 |
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http://hdl.handle.net/10438/751 |
dc.language.iso.fl_str_mv |
eng |
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eng |
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Ensaios Econômicos;236 |
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info:eu-repo/semantics/openAccess |
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openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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