Business cycle determinants and fiscal policy: A Panel ARDL approach for EMU

Papageorgiou, Theofanis; Michaelides, Panayotis G.; Tsionas, Efthymios G.

doi:10.1016/j.jeca.2015.12.001

Cited by 23 publications

(14 citation statements)

References 48 publications

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“…Additionally, this model has the capacity to deal with cointegration and endogeneity, computing unbiased coefficients. Therefore, in accordance with the literature, the ARDL model applied in panel data produces consistent parameter estimations (Papageorgiou et al 2016).…”

Section: Methodssupporting

confidence: 83%

The role of globalisation, de jure and de facto, on environmental performance: evidence from developing and developed countries

Leal

Marques

Shahbaz

2020

Environ Dev Sustain

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In the context of globalisation, is a country's level of development an obstacle to its environmental performance? The main objective of this research is to identify the role played in the environmental performance of countries with different levels of development, globalisation, and environmental regulation, by the three dimensions and two new measures of globalisation, de jure and de facto. This analysis was accomplished by assessing the environmental curve which relates economic growth to environmental degradation, known as the environmental Kuznets curve, for a sample of 32 developed and 26 developing economies from 1995 to 2017. It was found that developed countries produced an inverted U-shaped curve and that globalisation had a mostly beneficial effect on the environment. In contrast, developing economies produced a U-shaped curve and globalisation was generally harmful. Globalisation caused reductions of 0.88% and 0.85% in the environmental degradation of developed countries, and increases of 0.20% and 0.52% in developing ones. Political globalisation produced different effects for each measure in developed countries and had no effect in developing countries. Economic globalisation suggests the relocation of polluting industries from developed to developing countries. As there is currently very little literature on the new measures of globalisation, this study provides fresh insights for policymakers devising appropriate measures to achieve sustainability in both developed and developing countries. Keywords Globalisation de jure and de facto • Carbon dioxide emissions • Developed countries • Developing countries • Environmental Kuznets curve * António Cardoso Marques

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Section: Methodssupporting

confidence: 83%

The role of globalisation, de jure and de facto, on environmental performance: evidence from developing and developed countries

Leal

Marques

Shahbaz

2020

Environ Dev Sustain

View full text Add to dashboard Cite

show abstract

“…In addition, both the short‐run and long‐run effects can be estimated simultaneously from a data set with large cross‐section and time dimensions. Finally, Papageorgiou, Michaelides, and Tsionas (2016) show that ARDL is a powerful and general technique to deal with long‐run and short‐run relationships between I(1) variables.…”

Section: Methodsmentioning

confidence: 99%

To EMU or not to EMU: Can TFP “provoke” the capital structure puzzle of SMEs?

2020

Self Cite

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This article investigates the influence of the macroeconomic environment on corporate leverage. Using panel data of European listed SMEs, we examine the relationship between capital structure and country‐level total factor productivity (TFP), GDP growth, interest rates and stock market development across firm categories (micro, small, and medium) and monetary regimes (EMU and non‐EMU countries) for the period 2005–2015. By performing a dynamic panel data analysis into a vector error correction framework, along with several model specifications and robustness tests, we provide new evidence that country‐level TFP is an important determinant of capital structure choice, while its impact depends on the institutional environment (inside the EMU or not). Although there are both short‐run and long‐run dynamic relationships between the corporate leverage and the macroeconomic factors, to EMU or not to EMU is also evident when looking at the three size categories. Overall, our results suggest that all SMEs are not the same, and the determinants of their capital structure vary across size categories.

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“…From the panel heterogeneous cointegration approach model, the MG estimator only takes into account of the mean of the parameters and estimate different regression for each group (Papageorgiou et al, 2016). On the other hand, the PMG estimator considers the combination of the pooling and averaging coefficients.…”

Section: Empirical Methodologymentioning

confidence: 99%

Monetary policy reaction function and external economic uncertainty: evidence from 30 selected countries

Gan¹,

Yee²,

Hadi³

et al. 2019

10.5267/j.msl

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A noteworthy feature in the monetary policy decision making is that interest rate can play a significant role in addressing economic uncertainty. Although the empirical studies on monetary policy reaction function routinely include the output gap and the inflation, not many studies take into account the exchange rate uncertainty and terms of trade uncertainty. To overcome this shortcoming, this paper examines the monetary policy reaction function by including the external economic uncertainty. Based on 30 selected countries, the estimation is relaxed by using the panel heterogeneous cointegration technique. The findings suggest that (i) the interest rate can serve as an important instrument for the central bank policy decision making to combat the economic uncertainty arising from output, inflation, exchange rate and terms of trade (TOT), and (ii) the economic uncertainty (i.e., output uncertainty, inflation uncertainty, exchange rate uncertainty and TOT uncertainty) can serve as a useful information for monetary policy action to avoid and/or mitigate a negative impact of uncertainty.

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Business cycle determinants and fiscal policy: A Panel ARDL approach for EMU

Cited by 23 publications

References 48 publications

The role of globalisation, de jure and de facto, on environmental performance: evidence from developing and developed countries

The role of globalisation, de jure and de facto, on environmental performance: evidence from developing and developed countries

To EMU or not to EMU: Can TFP “provoke” the capital structure puzzle of SMEs?

Monetary policy reaction function and external economic uncertainty: evidence from 30 selected countries

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