How great are the great ratios?

C-Tier
Journal: Applied Economics
Year: 2003
Volume: 35
Issue: 2
Pages: 163-177

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The balanced growth and neoclassical stochastic growth literatures imply stationarity of certain macroeconomic 'great ratios'. Four such ratios are considered: consumption:output, investment:output, the real interest rate and real money supply growth, and evidence for ratio stationarity in the G7 countries is examined. Univariate unit root and stationarity tests are performed, and analysis of the cointegrating relations between output, consumption and investment is conducted. Almost no evidence of stationarity is found for the consumption:output and investment:output great ratios. Empirical evidence supports real money supply growth stationarity, but is more mixed for the real interest rate.

Technical Details

RePEc Handle
repec:taf:applec:v:35:y:2003:i:2:p:163-177
Journal Field
General
Author Count
3
Added to Database
2026-01-25