In this paper we pursue an approach based on economic theory to illustrate possible shortcomings of widely used detrending methods. We analyze a simple model of economic growth and business cycles in which investment and technical progress are stochastic. The Hodrick-Prescott and the Baxter-King filt...
We analyze a simple model of economic growth and business cycles in which investment and technical progress are stochastic. The Hodrick-Prescott and the Baxter-King filter are shown to detect spurious business cycles that are not related to actual cycles in the model. Our results cast doubts on...
Starting from (neo)classical flexprice model, the crisis saw the start of Keynesian, fixprice, economics. During the 1970s, flexprice models again came on the forefront, cumulating to extreme neoclassical models where economic fluctuations is the result of continuous technical shocks. It is only...
and the common aspiration of the people. Green development is development that follows the laws of nature to promote harmonious coexistence between humanity and nature, development that obtains the maximum social and economic benefits at minimum cost in resources ...
Growth model theory has turned the focus of comparative political economy scholars on the demand drivers of economic growth. But while its proponents emphasize the variety and inherent instability of growth models, research so far has been more concerned with the emergence and coherence of stable gro...
From the perspective of innovation studies, however, there remains a need for an explicit measure of the technological capabilities of nations. Can the missing link between product groups and technology (patent) portfolios be endogenized into the model (Nelson and Winter, 1977, Nelson and Winter...
Achieving sustainable rural development is essential for countries worldwide to balance development between urban and rural areas; especially, sustainable social development is crucial. In the face of rapid urbanization in China, the withdrawal of rural
The relationship between growth and cycles has also been tackled from a different point of view; some contributions in the EG literature focus on the possibility of generating non-linear (periodic) dynamics as the effect of introducing endogenous growth into an otherwise neoclassical growth model. ...
This paper provides a retrospective on the modelling of trends and cycles in economic time series and considers where the research agenda currently stands and where future developments might lie. A brief survey of the early empirical research on trends and cycles is first provided before attention ...
The formulation of the trend in (11) is called the ‘contemporaneous state’ model by Harvey and Koopman (2000), in contrast to the ‘future state’ model, in whichμt+1=μt+ξt. When the innovations are assumed to be uncorrelated, as we do here, the two specifications are essentially...