Classical theory of investment: panel cointegration evidence from 13 EU countries

Alexiou, Constantinos; Tsaliki, P.; Tsoulfidis, L.

dc.contributor.author	Alexiou, Constantinos
dc.contributor.author	Tsaliki, P.
dc.contributor.author	Tsoulfidis, L.
dc.date.accessioned	2016-07-28T10:55:38Z
dc.date.available	2016-07-28T10:55:38Z
dc.date.issued	2016-06-07
dc.identifier.citation	Alexiou, C., Tsaliki, P., Tsoulfidis, L. (2016) Classical theory of investment: panel cointegration evidence from 13 EU countries, Contributions to Political Economy, 2016, Vol. 35, Iss. 1, pp. 39 - 56	en_UK
dc.identifier.issn	0277-5921
dc.identifier.uri	http://dx.doi.org/10.1093/cpe/bzw004
dc.identifier.uri	http://dspace.lib.cranfield.ac.uk/handle/1826/10189
dc.description.abstract	In the realm of macroeconomic theory, it is well established that investment decisions play an instrumental role in the determination of the level of output and employment; nevertheless, little progress has been made in relation to the theoretical aspects of these decisions. This paper, inspired by the classical approach to capital accumulation as well as the Keynesian theory of effective demand, attempts to enhance our empirical understanding of what determines investment decisions by exploring profitability, financial as well as demand factors. In so doing, a ‘Fully Modified OLS’ panel cointegration framework, for a cluster of two distinct groups of EU countries classified as core and the peripheral economies, provides the platform upon which our econometric investigation takes place. The respective evidence generated from the estimation process is in line with the theoretical framework proposed in this paper.	en_UK
dc.language.iso	en	en_UK
dc.publisher	Oxford University Press	en_UK
dc.title	Classical theory of investment: panel cointegration evidence from 13 EU countries	en_UK
dc.type	Article	en_UK