Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82863
Authors: 
Andersson, Björn
Year of Publication: 
1999
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 1999:18
Abstract: 
The temporal interdependence between saving and output has been in focus in a number of recent empirical studies. Results from these studies have compelled some authors to question the traditional notion of a causal chain where saving leads growth through capital accumulation. This paper contributes to this literature. As opposed to the previous studies, which have mainly utilised panel-estimation methods, the tests of causal chains here are carried out in time-series settings. Saving and GDP are estimated in bivariate vector autoregressive or vector error-correction models for Sweden, UK, and USA, and tests of Granger non-causality are performed within the estimated systems. The main results show that the causal chains linking saving and output differ across countries, and also that causality associated with adjustments to long-run relations might go in different directions than causality associated with short-term disturbances.
Subjects: 
Saving
growth
Granger-causality
cointegration
VAR
VECM
JEL: 
C32
E21
O40
O57
Document Type: 
Working Paper

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