The study uses data on 14 countries (Taylor, 1994) to investigate if the saving-retention coefficient varies with country size. A novel semiparametric smooth-coefficient approach of Koop and Tobias (2005) is employed to make posterior inference via the Gibbs sampler algorithm. Empirical results show an overwhelming evidence in support of a positive (nonlinear) relationship between the saving-retention coefficient and country size.
|Number of pages||4|
|Journal||Applied Economics Letters|
|Publication status||Published - 2006 Mar 15|
ASJC Scopus subject areas
- Economics and Econometrics