Revisiting the Classical Theory of Investment: An Empirical Assessment from the European Union

  1. Boundi-Chraki, Fahd 1
  2. Perrotini-Hernández, Ignacio 2
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  2. 2 Universidad Nacional Autónoma de México
    info

    Universidad Nacional Autónoma de México

    Ciudad de México, México

    ROR https://ror.org/01tmp8f25

Revista:
Journal of Quantitative Economics

ISSN: 0971-1554 2364-1045

Año de publicación: 2024

Tipo: Artículo

DOI: 10.1007/S40953-024-00385-Y GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Journal of Quantitative Economics

Objetivos de desarrollo sostenible

Información de financiación

Referencias bibliográficas

  • Aftalion, A. 1927. The theory of economic cycles based on the capitalistic technique of production. The Review of Economics and Statistics 9 (4): 165. https://doi.org/10.2307/1935892.
  • Ahakwa, I. 2023. The role of economic production, energy consumption, and trade openness in urbanization-environment nexus: A heterogeneous analysis on developing economies along the Belt and Road route. Environmental Science and Pollution Research 30 (17): 49798–49816. https://doi.org/10.1007/s11356-023-25597-2.
  • Akram, V., and B.N. Rath. 2019. Is there any evidence of tax-and-spend, spend-and-tax or fiscal synchronization from panel of Indian state? Applied Economics Letters 26 (18): 1544–1547. https://doi.org/10.1080/13504851.2019.1584363.
  • Alexiou, C. 2010. A Keynesian-Kaleckian model of investment determination: A panel data investigation. Journal of Post Keynesian Economics 32 (3): 427–444. https://doi.org/10.2753/PKE0160-3477320307.
  • Alexiou, C., P. Tsaliki, and L. Tsoulfidis. 2016. Classical theory of investment: Panel cointegration evidence from 13 EU countries. Contributions to Political Economy 35 (1): 39–56. https://doi.org/10.1093/cpe/bzw004.
  • Arestis, P., and A.R. González-Martínez. 2016. Revisiting the accelerator principle in a world of uncertainty: Some empirical evidence. Economic Modelling 56: 35–42. https://doi.org/10.1016/j.econmod.2016.03.012.
  • Arestis, P., A.R. González-Martínez, and Ó. Dejuán. 2012. Modelling accumulation: A theoretical and empirical application of the accelerator principle under uncertainty. European Journal of Economics and Economic Policies: Intervention 9 (2): 255–275. https://doi.org/10.4337/ejeep.2012.02.08.
  • Baghestani, H., and T. Mott. 2014. Asymmetries in the relation between investment and output. Journal of Post Keynesian Economics 37 (2): 357–365. https://doi.org/10.2753/PKE0160-3477370208.
  • Baltagi, B.H., and M.H. Pesaran. 2007. Heterogeneity and cross section dependence in panel data models: Theory and applications introduction. Journal of Applied Econometrics 22 (2): 229–232. https://doi.org/10.1002/jae.955.
  • Banerjee, A., and J.L. Carrion-i-Silvestre. 2017. Testing for panel cointegration using common correlated effects estimators. Journal of Time Series Analysis 38 (4): 610–636. https://doi.org/10.1111/jtsa.12234.
  • Banerjee, A., M. Marcellino, and C. Osbat. 2005. Testing for PPP: Should we use panel methods? Empirical Economics 30 (1): 77–91. https://doi.org/10.1007/s00181-004-0222-8.
  • Basu, D. 2013. Replacement versus historical cost profit rates: What is the difference? When does it matter? Metroeconomica 64 (2): 293–318. https://doi.org/10.1111/meca.12008.
  • Baum, C. F., Schaffer, M. E., & Stillman, S. (2010). IVREG2: Statamodule for extended instrumental variables/2SLS, GMM and AC/HAC, LIML and k-class regression. https://ideas.repec.org/c/boc/bocode/s425401.html. Accessed on 1 Nov 2023
  • Bersvendsen, T., & Ditzen, J. (2020). xthst : Testing for slope homogeneity in Stata. CEERP Working Paper Series, (11), 1–28.
  • Blomquist, J., and J. Westerlund. 2013. Testing slope homogeneity in large panels with serial correlation. Economics Letters 121 (3): 374–378. https://doi.org/10.1016/j.econlet.2013.09.012.
  • Boundi Chraki, F. 2022. Reassessing the classical investment function. A panel data analysis from NAFTA-USMCA. Revista de Economía Mundial 61: 39–62. https://doi.org/10.33776/rem.v0i61.5145.
  • Breusch, T.S., and A.R. Pagan. 1980. The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies 47 (1): 239. https://doi.org/10.2307/2297111.
  • Caselli, F., G. Esquivel, and F. Lefort. 1996. Reopening the convergence debate: A new look at cross-country growth empirics. Journal of Economic Growth 1 (3): 363–389. https://doi.org/10.1007/BF00141044.
  • Chudik, A., and M.H. Pesaran. 2015. Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors. Journal of Econometrics 188 (2): 393–420. https://doi.org/10.1016/j.jeconom.2015.03.007.
  • Chudik, A., K. Mohaddes, M.H. Pesaran, and M. Raissi. 2016. Long-run effects in large heterogeneous panel data models with cross-sectionally correlated errors. In Advances in econometrics, vol. 36, 85–135. Emerald Group Publishing Ltd. https://doi.org/10.1108/S0731-905320160000036013.
  • Clark, J.M. 1917. Business acceleration and the law of demand: A technical factor in economic cycles. Journal of Political Economy 25 (3): 217–235. https://doi.org/10.1086/252958.
  • Dąbrowski, M.A., M. Papież, and S. Śmiech. 2018. Uncovering the link between a flexible exchange rate and fundamentals: The case of Central and Eastern European economies. Applied Economics 50 (20): 2273–2296. https://doi.org/10.1080/00036846.2017.1394974.
  • de Sismondi, S. 1821. New principles of political economy: Of wealth in its relation to population. Transactions Publisher.
  • Ditzen, J. 2018. Estimating dynamic common-correlated effects in Stata. The Stata Journal: Promoting Communications on Statistics and Stata 18 (3): 585–617. https://doi.org/10.1177/1536867X1801800306.
  • Dumitrescu, E.I., and C. Hurlin. 2012. Testing for Granger non-causality in heterogeneous panels. Economic Modelling 29 (4): 1450–1460. https://doi.org/10.1016/j.econmod.2012.02.014.
  • Durlauf, S.N., P.A. Johnson, and J.R.W. Temple. 2005. Chapter 8 growth econometrics. In Handbook of economic growth, vol. 1, 555–677. Elsevier. https://doi.org/10.1016/S1574-0684(05)01008-7.
  • Eberhardt, M. (2011a). XTCD: Stata module to investigate Variable/Residual Cross-Section Dependence. Statistical Software Components S457237. https://econpapers.repec.org/RePEc:boc:bocode:s457237. Accessed on 1 Nov 2023
  • Eberhardt, M. (2011b). MULTIPURT: Stata module to run 1st and 2nd generation panel unit root tests for multiple variables and lags. Statistical Software Components S457237. https://econpapers.repec.org/RePEc:boc:bocode:s457239. Accessed 3 Nov 2020
  • Eberhardt, M. 2012. Estimating panel time-series models with heterogeneous slopes. The Stata Journal: Promoting Communications on Statistics and Stata 12 (1): 61–71. https://doi.org/10.1177/1536867X1201200105.
  • Eberhardt, M., & Teal, F. (2010). Aggregation versus heterogeneity in cross-country growth empirics. http://econpapers.repec.org/RePEc:csa:wpaper:2010-32%5Cn, http://economics.ouls.ox.ac.uk/14465/. Accessed 1 Nov 2023
  • Fiorito, L., and M. Vernengo. 2009. The other J.M.: John Maurice Clark and the Keynesian revolution. Journal of Economic Issues 43 (4): 899–916. https://doi.org/10.2753/JEI0021-3624430404.
  • Granger, C.W.J. 1969. Investigating causal relations by econometric models and cross-spectral methods. Econometrica 37 (3): 424. https://doi.org/10.2307/1912791.
  • Gregori, T., and M. Giansoldati. 2020. Import demand in heterogeneous panel data with cross-sectional dependence. Applied Economics 52 (5): 443–458. https://doi.org/10.1080/00036846.2019.1645944.
  • Hsiao, C. 2007. Panel data analysis-advantages and challenges. TEST 16 (1): 1–22. https://doi.org/10.1007/s11749-007-0046-x.
  • Im, K.S., M.H. Pesaran, and Y. Shin. 2003. Testing for unit roots in heterogeneous panels. Journal of Econometrics 115 (1): 53–74. https://doi.org/10.1016/S0304-4076(03)00092-7.
  • Kaldor, N. 1970. The case for regional policies. Scottish Journal of Political Economy 17 (3): 337–348. https://doi.org/10.1111/j.1467-9485.1970.tb00712.x.
  • Kalecki, M. 1954. Theory of economic dynamics. An essay on cyclical and long-run changes in capitalist economy. Routledge.
  • Keynes, J.M. 1936. The general theory of employment, interest, and money. Macmillan.
  • Kim, K. 2022. Using dynamic common correlated effects approach to analyze the role of sin taxes in short- and long-term fiscal surplus across US states. Public Budgeting & Finance 42 (2): 255–278. https://doi.org/10.1111/pbaf.12313.
  • Kurz, H.D. 2016. David Ricardo (1772–1823). In Handbook on the history of economic analysis, vol. I, ed. G. Faccarello and H.D. Kurz, 120–143. Edward Elgar Publishing. https://doi.org/10.4337/9781785366642.00025.
  • Lewandowski, P. (2007). PESCADF: Stata module to perform Pesaran’s CADF panel unit root test in presence of cross section dependence. EconPapers. https://econpapers.repec.org/RePEc:boc:bocode:s456732. Accessed 1 Nov 2023
  • Liboreiro, P.R. 2023. Estimating disguised unemployment in major middle-income countries by means of non-linear input–output analysis, 2000–2014. Economic Systems Research 35 (4): 634–657. https://doi.org/10.1080/09535314.2022.2135091.
  • Liboreiro, P.R., R. Fernández, and C. García. 2021. The drivers of deindustrialization in advanced economies: A hierarchical structural decomposition analysis. Structural Change and Economic Dynamics 58: 138–152. https://doi.org/10.1016/j.strueco.2021.04.009.
  • Mamba, E., and E. Ali. 2022. Do agricultural exports enhance agricultural (economic) growth? Lessons from ECOWAS countries. Structural Change and Economic Dynamics 63 (October): 257–267. https://doi.org/10.1016/j.strueco.2022.10.003.
  • McNulty, P.J. 1968. Economic theory and the meaning of competition. Quarterly Journal of Economics 82 (4): 639–656. https://doi.org/10.2307/1879604.
  • Myrdal, G. 1957. Economic theory and underdeveloped countries. Duckworth.
  • Pedroni, P. 2000. Fully modified OLS for heterogeneous cointegrated panels. Advances in Econometrics 15: 93–130. https://doi.org/10.1016/S0731-9053(00)15004-2.
  • Pedroni, P. 2001. Purchasing power parity tests in cointegrated panels. Review of Economics and Statistics 83 (4): 727–731. https://doi.org/10.1162/003465301753237803.
  • Pedroni, P. 2004. Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econometric Theory 20 (3): 597–625. https://doi.org/10.1017/S0266466604203073.
  • Persyn, D., and J. Westerlund. 2008. Error-correction–based cointegration tests for panel data. The Stata Journal: Promoting Communications on Statistics and Stata 8 (2): 232–241. https://doi.org/10.1177/1536867X0800800205.
  • Pesaran, M.H. 2006. Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica 74 (4): 967–1012. https://doi.org/10.1111/j.1468-0262.2006.00692.x.
  • Pesaran, M.H. 2007. A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics 22 (2): 265–312. https://doi.org/10.1002/jae.951.
  • Pesaran, M.H. 2021. General diagnostic tests for cross-sectional dependence in panels. Empirical Economics 60 (1): 13–50. https://doi.org/10.1007/s00181-020-01875-7.
  • Pesaran, M.H., and R. Smith. 1995. Estimating long-run relationships from dynamic heterogeneous panels. Journal of Econometrics 68 (1): 79–113. https://doi.org/10.1016/0304-4076(94)01644-F.
  • Pesaran, M.H., and T. Yamagata. 2008. Testing slope homogeneity in large panels. Journal of Econometrics 142 (1): 50–93. https://doi.org/10.1016/j.jeconom.2007.05.010.
  • Phillips, P.C.B., and H.R. Moon. 1999. Linear regression limit theory for nonstationary panel data. Econometrica 67 (5): 1057–1111. https://doi.org/10.1111/1468-0262.00070.
  • Ricardo, D. 1821. On the principles of political economy and taxation. London: Liberty Fund.
  • Samuelson, P.A. 1939. A synthesis of the principle of acceleration and the multiplier. Journal of Political Economy 47 (6): 786–797. https://doi.org/10.1086/255469.
  • Saqib, N. 2022. Green energy, non-renewable energy, financial development and economic growth with carbon footprint: Heterogeneous panel evidence from cross-country. Economic Research-Ekonomska Istraživanja 35 (1): 6945–6964. https://doi.org/10.1080/1331677X.2022.2054454.
  • Schumpeter, J.A. 1942. Capitalism, socialism and democracy. Routledge.
  • Sharma, C., and D. Pal. 2021. Revisiting resource curse puzzle: New evidence from heterogeneous panel analysis. Applied Economics 53 (8): 897–912. https://doi.org/10.1080/00036846.2020.1817309.
  • Smith, A. 1776. An Inquiry into the Nature and causes of the wealth of nations. Liberty Classics.
  • Swamy, P.A.V.B. 1970. Efficient inference in a random coefficient regression model. Econometrica 38 (2): 311. https://doi.org/10.2307/1913012.
  • Temple, J. 1999. The new growth evidence. Journal of Economic Literature 37 (1): 112–156. https://doi.org/10.1257/jel.37.1.112.
  • Urbain, J.P., and J. Westerlund. 2006. Spurious Regression in Nonstationary Panels with cross-unit cointegration, 1–7. METEOR. https://doi.org/10.26481/umamet.2006057.
  • Westerlund, J. 2007. Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics 69 (6): 709–748. https://doi.org/10.1111/j.1468-0084.2007.00477.x.
  • Wooldridge, J.M. 2016. Introductory econometrics: A modern approach. Nelson Education.