Original scientific paper

CAN ECONOMIC GROWTH LAST? SERIOUSLY.

Saša Stjepanović

Abstract

This study analyses the relationship between energy
consumption and economic growth rate in the period
1980 - 2002 in Sweden. A specific question that is
addressed throught this study is what is the threshold
energy consumption rate for Sweden. In addition, we
try to answer a question, if there is statistical significant
relationship between energy consumption and
growth. In this paper, we use econometric methodology
of the threshold estimation proposed by Hansen
(2000). Hansen, develops new tests for threshold effects,
estimates the threshold parameter, and constructs
asymptotic confidence intervals for the threshold
parameter. The primary idea behind the Hansen
test for threshold estimation is that an exogenously
given variable, called «threshold variable», is used to
split the sample in two groups or regime, which can
or cannot be a regressor. This theory derives the asymptotic
distribution of the Ordinary Least Squares
(OLS) estimates of the threshold parameter.

Keywords

Hansen test; Energy consumption; Economic growth; Sweden

Hrčak ID:

133117

URI

https://hrcak.srce.hr/133117

Publication date:

1.12.2013.

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