The objective of this paper is to examine the long-run Purchasing Power Parity hypothesis in a dynamic panel of twenty OECD countries, using recently developed heterogeneous panel cointegration tests that have not been previously applied to PPP. Another contribution is that we investigate the symmetry and proportionality conditions in PPP using likelihood-based inference as suggested by Johanse...

This study examines the relationship between coal consumption and economic growth for 15 emerging market economies within a multivariate panel framework over the period 1980–2006. The heterogeneous panel cointegration results indicate there is a long-run equilibrium relationship between real GDP, coal consumption, real gross fixed capital formation, and the labor force. While in the long-run bo...

The effect of interest rates, capital goods prices, and taxes on the capital stock is an issue of central importance in economics, with implications for monetary policy, business cycle models, tax policy, economic development, growth, and other areas. For more than 30 years it has been difficult to obtain precise estimates of these effects, and there is little consensus in the profession on the...

Using a new panel cointegration test that considers serial correlation and cross-section dependence on mixed heterogenous sample of Saudi banks, we revisit the cointegrating equation z-score index banking stability. Our results show even when consider dependency errors, there is possibility long-run relationship, which holds in our banks. Furthermore, medium term, found some banks to be integra...

Is just only one cointegrating vector among the panel variables? Based on the multivariate maximum likelihood cointegration tests offered by Larsson et al. (2001), the findings here provide solid evidence of the presence of at least two cointegrated vectors for the money demand function in GCC countries,