Discussion Paper
No. 2015-2 | January 07, 2015
Acikgöz Senay and Merter Mert
The Endogeneity of the Natural Rate of Growth: An Alternative Approach

Abstract

This study estimates and tests the endogeneity of the natural rate of growth using the balance-of-payments consistent rate of growth (BPCRG) instead of the actual rate of growth. Our approach is also theoretically compatible with the one proposed by Thirlwall (2001). Following this idea, we first calculated the BPCRG and then tested the Thirlwall’s Law for the U.S. economy. We then proceeded to test the endogeneity using the BPCRG. Empirical results we obtained support Thirlwall’s Law and endogeneity.

Data Set

JEL Classification:

O40, E10, E23, C22

Cite As

Acikgöz Senay and Merter Mert (2015). The Endogeneity of the Natural Rate of Growth: An Alternative Approach. Economics Discussion Papers, No 2015-2, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-2


Comments and Questions



Anonymous - Invited Reader Comment
March 20, 2015 - 17:35
Please see accompanying file

Senay Acikgoz - Reply to the Invited Reader
March 26, 2015 - 19:23 | Author's Homepage
The attachment addresses in detail all the concerns of the invited reader.

Anonymous - Referee Report 1
March 30, 2015 - 14:45
See attached file

Senay Acikgoz - Reply to Referee Report 1
April 08, 2015 - 09:00
Reply to the Referee’s Comments on “The endogeneity of the natural rate of growth: an alternative approach”

Anonymous - Referee Report 2
April 13, 2015 - 09:44
See attached file

Senay Acikgoz - Reply to Referee Report 2
April 17, 2015 - 16:05 | Author's Homepage
The attachment is our reply to the second referee.