Cifter, Atilla and Ozun, Alper (2007): Multiscale Causality between Energy Consumption and GNP in Emerging Markets: Evidence from Turkey.

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Abstract
Tests results for causality between energy consumption and economic growth do not have a consensus in the financial economics literature. Empirical evidence varies on the economies examined and methodology employed. This paper proposes a wavelet analysis as a semi parametric model for detecting multiscale causality between electricity consumption and growth in emerging economies. Using wavelet analysis we find that in the short run there is feedback relationship between GNP and energy consumption, while in the long run GNP leads to energy consumption. Wavelet correlation between GNP and energy consumption is maximum at 3rd timescale(58 years) and this shows that GNP effects electricity consumption maximally around 58 years later in the longrun. We also find that the magnitude of the wavelet correlation changes based on timescales for GNP and energy consumption and thus indicate that GNP and energy consumption are fundamentally different in the long run.
Item Type:  MPRA Paper 

Institution:  Marmara University 
Original Title:  Multiscale Causality between Energy Consumption and GNP in Emerging Markets: Evidence from Turkey 
Language:  English 
Keywords:  Economic Growth; Energy Consumption; Employment; Wavelets; Causality 
Subjects:  Q  Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4  Energy > Q43  Energy and the Macroeconomy C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General C  Mathematical and Quantitative Methods > C3  Multiple or Simultaneous Equation Models; Multiple Variables > C32  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models 
Item ID:  2483 
Depositing User:  Atilla Cifter 
Date Deposited:  03. Apr 2007 
Last Modified:  14. Feb 2013 04:08 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/2483 