Superexogeneity and the dynamic linkages among international equity markets

In this article, we combine the Johansen procedure for cointegration testing with tests of weak exogeneity and invariance in order to ascertain whether a system of equity markets is characterized by superexogeneity. Superexogeneity is rejected for the system comprised of stock indices of the US, UK, Germany and Japan. This finding implies that agents participating in these financial markets are forward looking, all markets are endogenous in our system and the assumption of stability of the asset demand function is questionable

Saving and investment causality : implications for financial integration in transition countries of Eastern Europe

Numerous studies have been devoted to the Feldstein-Horioka puzzle.However, no consensus has been reached in the literature. This paper examines the causal relationship between domestic saving and investment rates in six transition economies (Estonia, Latvia, Lithuania, Ukraine, Belarus, and Russian Federation). Theoretically, the presence of any type of causal structure between these two series in a country implies that national capital markets are not open; hence capital flows are impeded. Therefore, the paper employs the bootstrap panel Granger causality approach that accounts for both cross-sectional dependence and slope heterogeneity across countries to determine the causal  structure. The findings show that there is a causality between the series, thereby implying that capital is not perfectly mobile internationally in any of the countries under review, but it is more mobile in Estonia, Russian  Federation, and Latvia than Lithuania, Belarus, and Ukraine. The underdevelopment of financial markets in these countries as well as the demand for foreign capital to finance domestic investment projects and the lack of adequate economic and financial reforms might have driven  these results

Structural breaks and the twin deficits hypothesis

Current account adjustment, Public budget deficit, Structural change, Econometric model, Twin deficits, C53, F32, H62,

Governing budgetary commons: what can we learn from Elinor Ostrom?

Fiscal commons, Budgetary institutions, Constitutional law and economics, Institutional economics, Constitutional economics, B52, H11, H30, H61, H62,