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THE ROLE OF THE GOLD STANDARD IN THE GIBSON PARADOX
Author(s) -
Sumner Scott
Publication year - 1993
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1993.tb00567.x
Subject(s) - economics , econometrics , gold standard (test) , sample (material) , test (biology) , positive economics , mathematics , statistics , paleontology , biology , chemistry , chromatography
Recent papers by Lee and Petruzzi (1986) and Barsky and Summers (1988) provide rival theories of how the Gibson Paradox could result from the impact of changes in the interest rate on the real price of gold. This paper empirically tests each model and finds more support for the Lee‐Petruzzi approach than the Barsky‐Summers approach. The paper also suggests that Lee and Petruzzi may have used an inappropriate method to test their model, and that both papers employed inappropriate sample periods.