nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2008‒12‒21
three papers chosen by
Iulia Igescu
Global Insight, GmbH

  1. Defense spending and economic growth in Asian economies: A panel error-correction approach By Habibullah, M.S.; Law, Siong-Hook; Dayang-Afizzah, A.M.
  2. Reshaping the International Monetary Architecture and Addressing Global Imbalances: Lessons from the Keynes Plan By Piffaretti, Nadia F.
  3. Multivariate Quantiles and Multiple-Output Regression Quantiles: From L1 Optimization to Halfspace Depth By Marc Hallin; Davy Paindaveine; Miroslav Siman

  1. By: Habibullah, M.S.; Law, Siong-Hook; Dayang-Afizzah, A.M.
    Abstract: Hoping to contribute to the existing pool of literature, this paper examines the relationship between military expenditure and economic growth in selected Asian countries for the period 1989 to 2004. Our panel unit root test suggests that real GDP per capita and military expenditures are )1(I processes, while the Larsson et al. (2001) panel cointegration test indicates that economic growth and military expendirues are cointegrated. Finally, applying the panel error-correction technique proposed by Pesaran et al. (1999), our empirical results show that defense spending and economic growth in the Asian countries under the period of study are not related.
    Keywords: Military expenditure; Economic growth; Panel unit root; Panel cointegration; Panel error-correction; Asian economies
    JEL: O10 H56 O40
    Date: 2008–01–05
  2. By: Piffaretti, Nadia F.
    Abstract: As we witness profound changes in the global economy, and as it becomes apparent that the so-called “Revived Bretton Woods System” may be nothing more than a temporary non sustainable financing of the US structural internal imbalance, favored by the global role of the dollar, which has increased the overall vulnerability of the global financial architecture, it’s worth revisiting the origins of the Bretton Woods conference, and pointing out the relevance for today’s framework of Keynes’ original 1942 plan for an International Clearing Union. In this note we explore the main characteristics of Keynes’ original plan, by revisiting his original writings between 1940 and 1944, and we outline its relevance to the current debate on the international financial architecture, We’ll argue that reforms of the international financial architecture should include anchoring the international monetary system on a sounder institutional ground.
    Keywords: International Financial Architecture; Bretton Woods Institutions; Keynes Plan; International Currency; Global Imbalances
    JEL: E12 E58 F02 N20 E50 E00 E44 F33
    Date: 2008–12–16
  3. By: Marc Hallin; Davy Paindaveine; Miroslav Siman
    Abstract: A new multivariate concept of quantile, based on a directional version of Koenker and Bassett’s traditional regression quantiles, is introduced for multivariate location and multiple-output regression problems. In their empirical version, those quantiles can be computed efficiently via linear programming techniques. Consistency, Bahadur representation and asymptotic normality results are established. Most importantly, the contours generated by those quantiles are shown to coincide with the classical halfspace depth contours associated with the name of Tukey. This relation does not only allow for efficient depth contour computations by means of parametric linear programming, but also for transferring from the quantile to the depth universe such asymptotic results as Bahadur representations. Finally, linear programming duality opens the way to promising developments in depth-related multivariate rank-based inference.
    Keywords: Multivariate quantiles, Quantile regression, Halfspace depth
    Date: 2008

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