Does Fisher hypothesis hold for the East Asian Economies? an application of panel unit root tests

Ling, Tai-Hu and Venus, Khim-Sen Liew and Syed Khalid Wafa, Syed Azizi Wafa (2008): Does Fisher hypothesis hold for the East Asian Economies? an application of panel unit root tests. Forthcoming in: Comparative Economic Studies

Abstract

This study provides evidence supportive of Fisher hypothesis in East Asian economies using panel unit root tests, which allow for the consideration of cross-country interdependence of real interest rates in the estimation. One important implication of our finding is that monetary policy will be more effective in influencing long-term interest rates and long-run macroeconomic stability in these East Asian economies with regional collaboration.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fisher Hypothesis; macroeconomics; East Asia; panel unit root; interest rates
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N15 - Asia including Middle East; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy

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