How Large is Average Economic Growth?

Tinbergen Inst. Discussion Paper No. TI 02-002/4

20 Pages Posted: 29 Jan 2002

See all articles by H. Peter Boswijk

H. Peter Boswijk

Amsterdam School of Economics; Tinbergen Institute

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Date Written: December 2001

Abstract

This paper puts forward a method to estimate average economic growth, and its associated confidence bounds, which does not require a formal decision on potential unit root properties. The method is based on the analysis of either difference-stationary or trend-stationary time series models, implementing the robust bootstrapping procedure advocated in Romano and Wolf (2001). Simulation evidence indicates the practical relevance of the method. It is illustrated on quarterly post-war US industrial production.

Keywords: Growth, Unit root, Robust testing

JEL Classification: C13, C15, C22

Suggested Citation

Boswijk, H. Peter and Franses, Philip Hans, How Large is Average Economic Growth? (December 2001). Tinbergen Inst. Discussion Paper No. TI 02-002/4, Available at SSRN: https://ssrn.com/abstract=298004 or http://dx.doi.org/10.2139/ssrn.298004

H. Peter Boswijk (Contact Author)

Amsterdam School of Economics ( email )

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Netherlands

HOME PAGE: http://www.uva.nl/profile/h.p.boswijk

Tinbergen Institute ( email )

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Rotterdam, 3062 PA
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Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

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