INTERNATIONAL EVIDENCE ON THE LONG-RUN IMPLICATIONS OF THE NEOCLASSICAL GROWTH-MODEL

Quarterly data from the International Financial Statistics of the International Monetary Fund is used to test the long-run implications of the neoclassical stochastic growth model for ten OECD countries - Canada, France, Germany, Italy, the Netherlands, Norway, Switzerland, Japan, the United Kingdom and the United States. In doing so, Johansen's maximum likelihood approach for estimating and testing long-run steady-state relations in multivariate vector autoregressive models is used.