Abstracts
| DOI | http://doi.org/10.1111/1468-0084.00030 |
| Published date | 01 September 2002 |
| Date | 01 September 2002 |
OXFORD BULLETIN
of
ECONOMICS and STATISTICS
Volume 64 September 2002 No. 4
OXFORD BULLETIN OF ECONOMICS AND STATISTICS, 64, 4 (2002) 0305-9049
Abstracts
Asymmetric Interest Rate Effects for the UK Real Economy
Marianne Sensier, Denise R. Osborn and Nadir O
¨cal
Recent literature has uncovered asymmetries in the response of real output to
monetary policy variables. Nevertheless, it remains unclear whether such
asymmetries relate to different responses to monetary policy or to the business
cycle. This paper uses nonlinear models to examine the issues in the context of
interest rate effects on quarterly UK GDP growth. Strong evidence of
nonlinearity is found, with asymmetry relating to the business cycle through
lagged GDP regimes and interest rate changes. The results suggest that interest
rate effects on GDP are larger when either lagged growth has been high or
when interest rates have substantially increased in the past. However, the
inclusion of interest rate regimes without taking account of GDP regimes
yields an unsatisfactory model.
Why Does the Engel Method Work? Food Demand, Economies of Size and
Household Survey Methods
John Gibson
Estimates of household size economies are needed for the analysis of poverty
and inequality. This paper shows that Engel estimates of size economies are
large when household expenditures are obtained by respondent recall but
small when expenditures are obtained by daily recording in diaries.
Expenditure estimates from recall surveys appear to have measurement errors
correlated with household size. As well as demonstrating the fragility of Engel
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