Capita selecta The Economie V : Arbeidsduur en welvaartspeil

275 hal.;ill.;21 c

Research methods in economics & business

xiv+573hlm.;23c

Economic Growth and Verdoorn's Law in the Spanish Regions, 1962-91

The aim of this paper is to test for the presence of dynamic increasing returns to scale in the Spanish regions between 1962 and 1991.The framework in which this paper is based is the so-called Verdoorn's Law. Tests are carried out for the manufacturing sector, agriculture, construction, services and total value added. The results show substantial increasing returns for manufacturing, services sector and for total value added. The staticdynamic paradox found by McCombie (1982) is also discussed and tested. We find no support for the hypothesis of a Cobb-Douglas function as the underlying technical relationship of the law.

The endogeneity of the natural rate of growth – an empirical study for Latin‐American countries

The aim of this paper is to analyse the sensitivity of the natural rate of growth to the actual rate of growth for a sample of 11 Latin‐American countries, assuming the natural rate to be determined endogenously by changes in the actual rate of growth. The natural rates of growth are estimated in a system of SUR estimations over the period 1986–2003. In order to determine whether they react endogenously to changes in the actual rate of growth, a dummy variable for boom periods is added to the system of regressions. The results confirm the hypothesis about the endogeneity of the natural rate of growth.natural rate of growth, actual rate of growth, endogeneity, Latin America, seemingly unrelated regressions, O40, E10, C23,