Balanced growth and structural breaks: evidence for Germany |
| |
Authors: | Niels Kemper Dierk Herzer Luca Zamparelli |
| |
Institution: | (1) College of Business Administration, 2500 California Plaza, Creighton University, Omaha, NE 68178, USA |
| |
Abstract: | One of the central hypotheses of the neoclassical growth literature is the balanced-growth hypothesis, which predicts that
output, consumption and investment grow at the same rate. Empirically, this implies that the consumption-to-output ratio and
the investment-to-output ratio must be stationary and that consumption and investment must be cointegrated with output. This
article tests these implications with respect to Germany, using unit root tests and cointegration techniques that allow for
an endogenously determined structural break. We find that the long-run growth path of the German economy is consistent with
the balanced-growth hypothesis if we allow for a structural break associated with the worldwide productivity slowdown of the
early 1970s. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|