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Third GAPE 2024 Lecture

Third GAPE 2024 Lecture - Fahd Boundi-Chraki & Ignacio Perrotini‑Hernández Revisiting the Classical Theory of Investment: An Empirical Assessment from the European Union'

On Wednesday, April 17, 2024, at 19:00, the third GAPE 2024 lecture will take place. The speakers will be Fahd Boundi-Chraki (Department of Applied Economics, Structure and History, Complutense University of Madrid, Madrid, Spain) & Ignacio Perrotini‑Hernández (School of Economics, National Autonomous University of Mexico (UNAM), Mexico City, Mexico), who will present their research 'Revisiting the Classical Theory of Investment: An Empirical Assessment from the European Union'.

Abstract

In alignment with classical investment theory, this study explores the enduring relationships and causal linkages among total private investment, profit rate, unit labour costs, and demand growth within the European Union throughout the period spanning from 1961 to 2019. The empirical approach adopted involves the use of advanced econometric techniques designed to address cross-sectional dependence and slope heterogeneity. As a first stage, we examine stationarity and cointegration by employing second-generation panel unit root and cointegration tests. Subse quently, we estimate long-run equations through estimators intended to control for cross-sectional dependence and slope heterogeneity. As a further step, we use the Dumitrescu-Hurlin procedure to examine potential bidirectional causality between the variables and detect whether there exists endogeneity in the data. Finally, we apply the dynamic common correlated effects estimator mean group with instrumental variables to control for the potential presence of endogeneity. The outcomes of the analysis underscore a positive association between private investment and the profit rate, unit labour costs, and demand growth, thus providing robust empirical support for the classical theory of investment.

Keywords: Investment · European Union · Heterogeneity · Cross-sectional
dependence · Causality

Zoom Link: https://zoom.us/j/98600740805

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ΣΧΕΤΙΚΑ Μ΄ΕΜΑΣ

Έχει ιδρυθεί μη κερδοσκοπικό Σωματείο με την επωνυμία «Επιστημονική Εταιρεία Πολιτικής Οικονομίας (ΕΕΠΟ)», με έδρα την Αθήνα. Σκοπός του Σωματείου είναι η προαγωγή της διδασκαλίας, έρευνας και διάδοσης της γνώσης στον τομέα της Πολιτικής Οικονομίας.