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The stationarity of British economic and productivity growth 1856–1913
Author(s) -
Greasley D.
Publication year - 1992
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950070208
Subject(s) - cointegration , climacteric , productivity , economics , econometrics , order (exchange) , macroeconomics , classical economics , constant (computer programming) , series (stratigraphy) , computer science , paleontology , genetics , menopause , finance , biology , programming language
Characterization of late nineteenth‐century British economic performance rests heavily on identifying trends and turning points in GDP and productivity growth. Crafts, Leybourne and Mills (1989) provide the most sophisticated study in this genre, deploying a time‐varying parameter model, to severely dent the notion of a climacteric. This paper argues the linear trend approach to assessing the climacteric may be otiose. Investigating the order of integration of the GDP series, and the cointegration of GDP and factor input growth, suggests both GDP and productivity growth tended to revert to a constant mean rate within the period 1856–1913, and undermines the notion of a climacteric.