Please use this identifier to cite or link to this item: http://ktisis.cut.ac.cy/handle/10488/5179
Title: On the exploration of causal relationships between energy and the economy
Authors: Zachariadis, Theodoros 
Issue Date: 2006
Source: University of Cyprus Working Papers in Economics, 2006, Pages 26.
Abstract: The paper provides an overview of theoretical and methodological aspects of approaches used to test the interaction between energy use and economic development, and discusses the appropriateness of drawing policy conclusions on the basis of energy-economy Granger causality tests. Methodological issues, arising from the number and type of variables or the test methods used, are outlined. Problems associated with the use of bivariate models are illustrated by performing energy-economy causality tests for Germany and the US, using aggregate and sectoral data and three different econometric methods. The empirical examples presented illustrate that one should be cautious when drawing policy implications with the aid of bivariate causality tests on small sample sizes. Besides econometric problems, bivariate approaches may suffer from additional shortcomings, and the paper underlines the importance of using multivariate models, which accommodate several mechanisms and causality channels and provide a better representation of real-world interactions between energy use and economic growth.
URI: http://ktisis.cut.ac.cy/handle/10488/5179
http://172.16.21.12:8080/jspui/handle/10488/5179
http://hdl.handle.net/10488/5179
Appears in Collections:Άρθρα/Articles

Files in This Item:
File Description SizeFormat 
On the Exploration of Causal.pdf485.4 kBAdobe PDFView/Open
Show full item record

Page view(s) 5

64
Last Week
0
Last month
17
checked on Jul 27, 2017

Download(s) 50

1
checked on Jul 27, 2017

Google ScholarTM

Check


This item is licensed under a Creative Commons License Creative Commons