Show or hide comments about the document.
Search over the document's text.
Share the document through social networks or e-mail.
After selecting an area on the page.
...you can:
copy the text
share the segment
comment
cite the document

Fall 2005

ISSN 0890-913X

Volume 21, Number 1

Categories: Business | Fall 2005

The Austrian Business Cycle: a Vector Error-correction Model with Commercial and Industrial Loans

Robert F. Mulligan, Western Carolina University

Download

e-mail

<< Back to editing
Previous version by
<< Older
Newer >>
Revert to this one

Edit
Cancel
Fullscreen

Show comments
Zoom:
Page: / 33

Line spacing:
Word spacing:

Search:FindClose

search results

JournalofPrivateEnterprise,VolumeXXI,Fall2005TheAustrianBusinessCycle:aVectorError-correctionModelwithCommercialandIndustrialLoans'RobertF.MulliganWesternCarolinaUniversityVictor:Iknowwhatyou'retalkingabout.Butit'snotadream—it'sthatyou'vegottomakedecisionsbeforeyouknowwhat'sinvolved,butyou'restuckwiththeresultsaryway.ArthurMiller(1968)ThePrice,ActIIAvectorerror-correctionmodel(VECM)ofoutput,consumption,investment,andcreditisidentifiedandestimatedemployingtheJohansen-Juselius(1990)procedure.BecausetheAustrianschoolviewseconomicactivityasadisequilibriumprocess,VECMestimatesofferanempiricalmethodologyespeciallyamenabletointerpretationthroughAustrianbusinesscycle(ABC)theory.Garrison's(2001)restatementofABCtheoryandhisapplicationstohistoricalcyclesshouldleadtorenewedinterestinAustriancapitaltheory.AccordingtoABCtheory,recessionconstitutestheprocessofliquidatingresourcesandproductionplansmisallocatedduringtheunsustainableboom.Thispaperfindscompellingevidenceofsuchcyclesofmalinvesttnentandliquidationin1959-2003U.S.data.Austriancapitaltheory(Mises,1912,1949;Hayek,1931;FinancialsupportbytheJohnWilliamPopeFoundationisgratefullyacknowledged.ThispaperwasinitiallypresentedatthemeetingoftheAssociationofPrivateEnterpriseEducation,April5,2004.ThanksarealsoduetoRoyE.Cordatoforencouragementandakindinvitation,andtoWilliamButos,JayCochrane,JeffreyHummel,MackOtt,EdwardStringham,andLarryWhiteforhelpfulcomments.Theauthorremainsresponsibleforanyerrorsoromissions.RobertF.Mullligan59

GLIFOS-digital_archive

Metadata [hide]

Title	The Austrian Business Cycle: a Vector Error-correction Model with Commercial and Industrial Loans
Authors/Creators:	Robert F. Mulligan, Western Carolina University
Year:	2005
Volume:	21
Number:	1
Pages:	59 - 91
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Austrian economics, Business cycles, Vector error-correction mode, Industrial loans

Citation:
Mulligan, Robert F. / 2005. "The Austrian Business Cycle: a Vector Error-correction Model with Commercial and Industrial Loans." The Journal of Private Enterprise, 21(1): 59-91.