Theory tells us that output, the capital stock and the user cost of capital are cointegrated. From the capital accumulation identity, it also follows that the capital stock and investment have a long-run proportional relationship. This has been used to justify the estimation of investment equations embodying a long-run relation between investment and output, rather than between the capital stoc...

We model and analyze strategic interaction over time in a duopoly. Each period the …rms independently and simultaneously take two sequential decisions. First, they decide whether or not to advertise, then they set prices for goods which are imperfect substitutes. Not only the own, but also the other …rm’s past advertisement e¤orts a¤ect the current ‘sales potential’ of each …rm. How much of thi...

This paper uses recent developments in measuring correlation to examine the relationship between inflation and relative price variability. The results suggest that the positive correlation holds not only in the short-run but also in the long-run. This finding has important implications for theoretical models that purport to explain this relationship: such models must incorporate features that g...

T he main aim of this study is to investigate the impacts of population total, gross domestic product per capita, urbanization rate and energy use on carbon emissions in Nigeria for a period of 1981-2015 using autoregressive distributed lag approach to co-integration (ARDL). The empirical results revealed evidence of a long run relationship among the variables. The generalized ridge ...

this study attempts to investigate the effect of oil returns and external debt on the government expenditure in syria over the period 1970-2010. the johansen cointegration test showed that oil returns and external debt have a positive and significant long run relationship with government expenditure. the granger causality test indicates unidirectional short-run causality relationships running f...

introduction: there are many factors affecting crime rates. economic factors are one of them. also, nature of crimes and the effects of economic factors on them are different. economic crimes have a specific importance in economics of crime. researchers in iran don’t investigate the determinants of crime, especially economic crimes. thus, in this paper we investigate the short- and long run eff...

since tourism revenues play an important role in the economic performance of national economies, specifying factors affecting it and examination of demand for tourism have economic significance . a partial adjustment model of short run and long run demand for tourism short run and long run demand for tourism has been specified. the period of study is 1331-88 and the estimation method is ols. th...

  In this paper asymmetric price transmission mechanism and nonlinear adjustment between producer and retail prices of milk were examined in Zanjan Province of Iran. For this purpose, a Two-Regime Threshold Vector Error Correction Model (TVECM) and a Sup-LM Test developed by Hansen and Seo (2002) were employed for checking presence of a threshold effect. Application of unit root tests indicated...