Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model

Identifying the sources of macroeconomic fluctuations is critical to formulating macroeconomic policies. This paper investigates the sources of macroeconomic fluctuations in Malaysia based on the traditional Keynesian framework, using both the standard VAR and structural VAR methods. The joint behav...

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Main Authors:	Abdul Manap, Turkhan Ali, Kassim, Salina
Format:	Article
Language:	English
Published:	Curtin University of Technology, Perth, Australia and Ryukoku University, Kyoto, Japan. 2007
Subjects:	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations
Online Access:	http://irep.iium.edu.my/8625/ http://irep.iium.edu.my/8625/ http://irep.iium.edu.my/8625/1/Source_of_Macroeconomic_Fluctuations_Keynesian_Model__Published_Edition.pdf

id	iium-8625
recordtype	eprints
spelling	iium-86252012-02-15T11:45:11Z http://irep.iium.edu.my/8625/ Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model Abdul Manap, Turkhan Ali Kassim, Salina HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations Identifying the sources of macroeconomic fluctuations is critical to formulating macroeconomic policies. This paper investigates the sources of macroeconomic fluctuations in Malaysia based on the traditional Keynesian framework, using both the standard VAR and structural VAR methods. The joint behavior of the key macroeconomic variables in Malaysia is shown to be consistent with the dynamic transmission of demand and supply shocks through the mechanisms described in the Keynesian model. Positive supply shocks increase output while negative supply shocks contract output and increase price level. Money supply shocks stimulate output and increase the price level. These results are further supported by a variance decomposition analysis Curtin University of Technology, Perth, Australia and Ryukoku University, Kyoto, Japan. 2007 Article PeerReviewed application/pdf en http://irep.iium.edu.my/8625/1/Source_of_Macroeconomic_Fluctuations_Keynesian_Model__Published_Edition.pdf Abdul Manap, Turkhan Ali and Kassim, Salina (2007) Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model. Asia Pacific Journal of Economics and Business, 11 (2). pp. 58-77. http://www.business.curtin.edu.au/business/research/publications-by-cbs-staff/journals-published-by-cbs/asia-pacific-journal-of-economics-and-business/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations
spellingShingle	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations Abdul Manap, Turkhan Ali Kassim, Salina Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
description	Identifying the sources of macroeconomic fluctuations is critical to formulating macroeconomic policies. This paper investigates the sources of macroeconomic fluctuations in Malaysia based on the traditional Keynesian framework, using both the standard VAR and structural VAR methods. The joint behavior of the key macroeconomic variables in Malaysia is shown to be consistent with the dynamic transmission of demand and supply shocks through the mechanisms described in the Keynesian model. Positive supply shocks increase output while negative supply shocks contract output and increase price level. Money supply shocks stimulate output and increase the price level. These results are further supported by a variance decomposition analysis
format	Article
author	Abdul Manap, Turkhan Ali Kassim, Salina
author_facet	Abdul Manap, Turkhan Ali Kassim, Salina
author_sort	Abdul Manap, Turkhan Ali
title	Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
title_short	Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
title_full	Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
title_fullStr	Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
title_full_unstemmed	Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model
title_sort	sources of macroeconomic fluctuations in malaysia: an empirical test of the keynesian model
publisher	Curtin University of Technology, Perth, Australia and Ryukoku University, Kyoto, Japan.
publishDate	2007
url	http://irep.iium.edu.my/8625/ http://irep.iium.edu.my/8625/ http://irep.iium.edu.my/8625/1/Source_of_Macroeconomic_Fluctuations_Keynesian_Model__Published_Edition.pdf
first_indexed	2018-09-07T03:33:37Z
last_indexed	2018-09-07T03:33:37Z
_version_	1610918099980124160

Sources of macroeconomic fluctuations in Malaysia: an empirical test of the Keynesian model

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