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Irandoust, ManuchehrORCID iD iconorcid.org/0000-0003-0447-9349
Publications (3 of 3) Show all publications
Irandoust, M. (2018). Government spending and revenues in Sweden 1722–2011: evidence from hidden cointegration. Empirica, 45(3), 543-557
Open this publication in new window or tab >>Government spending and revenues in Sweden 1722–2011: evidence from hidden cointegration
2018 (English)In: Empirica, ISSN 0340-8744, E-ISSN 1573-6911, Vol. 45, no 3, p. 543-557Article in journal (Refereed) Published
Abstract [en]

This study examines the long-run causal relationship between government revenues and spending of the Swedish economy over the period 1722–2011. The results based on hidden cointegration technique and a modified version of the Granger non-causality test, show that there exists a long-run and asymmetric relationship between government spending and government revenues. Our estimation results can be summarized into three main empirical findings. First, the government follows a hard budget constraint and soft budget constraint strategies in the case of negative and positive shocks, respectively. Second, negative shocks to the fiscal budget are removed fairly quickly compared to positive shocks. Third, bi-directional causality between revenues and expenditures offers support in favor of the fiscal synchronization hypothesis. The policy implication is that budget deficit’s reduction could be achieved through government spending cut, accompanied by contemporaneous tax controls.

Keywords
Government spending Government revenue Hidden cointegration Fiscal policy Asymmetry
National Category
Economics and Business
Identifiers
urn:nbn:se:hkr:diva-16723 (URN)10.1007/s10663-017-9375-5 (DOI)000438433600005 ()
Available from: 2017-05-11 Created: 2017-05-11 Last updated: 2018-12-17Bibliographically approved
Irandoust, M. (2017). Metal prices and stock market performance: is there an empirical link?. Resources policy, 52, 389-392
Open this publication in new window or tab >>Metal prices and stock market performance: is there an empirical link?
2017 (English)In: Resources policy, ISSN 0301-4207, E-ISSN 1873-7641, Vol. 52, p. 389-392Article in journal (Refereed) Published
Abstract [en]

Most studies have focused on the role of oil and gold prices in the link between commodity prices and stock prices. This paper investigates the causal linkage between metal prices and share values for 10 European countries over the period of January 2011 to September 2016. On the basis of the bootstrap panel granger causality approach, the results show that the metal price index and stock price index are not causally related. The policy implication of this empirical finding is that the financial markets are informationally efficient in the sample countries' equity markets. Thus, the information contained in the metal price index cannot be used to predict the future values of the equity indexes.

Keywords
Stock price; Metal prices; European countries; Efficient market hypothesis
National Category
Economics and Business
Identifiers
urn:nbn:se:hkr:diva-16787 (URN)10.1016/j.resourpol.2017.05.001 (DOI)000404305800043 ()
Available from: 2017-05-23 Created: 2017-05-23 Last updated: 2018-01-30Bibliographically approved
Irandoust, M. (2017). Militarism and globalization: is there an empirical link?. Quality and quantity, 52(3), 1349-1369
Open this publication in new window or tab >>Militarism and globalization: is there an empirical link?
2017 (English)In: Quality and quantity, ISSN 0033-5177, E-ISSN 1573-7845, Vol. 52, no 3, p. 1349-1369Article in journal (Refereed) Published
Abstract [en]

Despite the fact that previous studies have extensively investigated the causal nexus between military expenditure and economic growth in both developed and developing countries, those studies have not considered the role of globalization. The aim of this study is to examine the relationship between militarism and globalization for the top 15 military expenditure spenders over the period 1990–2012. The bootstrap panel Granger causality approach is utilized to detect the direction of causality. The results show that military expenditure and overall globalization are causally related in most of the countries under review. This implies that countries experiencing greater globalization have relatively large increases in militarization over the past 20 years. The policy implication of the findings is that greater military spending by a country increases the likelihood of military conflict in the future, the anticipation of which discourages globalization.

Keywords
Militarism, globalization, causality, military spending
National Category
Social Sciences
Identifiers
urn:nbn:se:hkr:diva-17008 (URN)10.1007/s11135-017-0525-4 (DOI)000429944200024 ()
Available from: 2017-07-11 Created: 2017-07-11 Last updated: 2018-05-08Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0003-0447-9349

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