The endogeneity of the natural rate of growth: An alternative approach

Arbeitspapier

This study estimates and tests the endogeneity of the natural rate of growth using the balance-of-payments consistent rate of growth (BPCRG) instead of the actual rate of growth. Our approach is also theoretically compatible with the one proposed by Thirlwall (2001). Following this idea, we first calculated the BPCRG and then tested the Thirlwall's Law for the U.S. economy. We then proceeded to test the endogeneity using the BPCRG. Empirical results we obtained support Thirlwall's Law and endogeneity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2015-2

Classification and Topics

• Classification: Wirtschaft ; Economic Growth and Aggregate Productivity: General ; General Aggregative Models: General ; Macroeconomics: Production ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
• Subject: economic growth ; Thirlwall's Law ; the endogeneity of the natural rate of growth ; the bounds testing approach ; ARDL ; FM-OLS

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Senay, Acikgöz ; Mert, Merter
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/106142
• Last update: 10.03.2025, 11:43 AM CET