Did High Wages or High Interest Rates Bring Down the Weimar Republic? A Cointegration Model of Investment in Germany, 1925–1930
Bibliographic Data
| ID | 10101508 |
|---|---|
| Authors | Hans-Joachim Voth (0000-0003-4518-3149, corresponding author) |
| Year | 1995 |
| Volume | 55 |
| Issue | 4 |
| Pages | 801-821 |
| Publication date | 1995-12-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic History (JOURNAL) |
| Journal identifiers | ISSN: 0022-0507 • E-ISSN: 1471-6372 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0022050700042169 |
| OpenAlex | W2100236835 |
| Language | EN |
| Citations received | 6 |
| References cited | 29 |
This article offers a new interpretation of the low level of investment in Germany during the interwar period. Earlier contributions attributed the slow expansion of capital stock either to excessive wages due to state intervention and unionization or to the high cost of capital. These hypotheses are tested by estimating a cointegration model of investment. Counterfactual simulations demonstrate that lower wages would have lowered investment still further and that high interest rates acted as the main brake on investment during the second half of the 1920s
Capital (architecture · Cointegration · Counterfactual thinking · Econometrics · Economics · German · Interest rate · Investment (military · Keynesian economics · Labour economics · Macroeconomics · Monetary economics · Political science · Weimar Republic · German Economic Analysis & Policies · Historical Economic and Social Studies · Monetary Policy and Economic Impact
Das Wachstum der deutschen Wirtschaft seit der Mitte des 19. Jahrhunderts
Spurious regressions in econometrics
Efficient tests for normality, homoscedasticity and serial independence of regression residuals
Equipment Investment and Economic Growth
Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root
Die Zentralbank — eine Nebenregierung
German Macroeconomic History, 1880–1979
Investitionen in den „Goldenen Jahren“ der Weimarer Republik
Weimar
The German Slump
Wages, Investment, and the Fate of the Weimar Republic
Productivity Growth and Machinery Investment
Real Wages, Productivity, and Unemployment in Britain and Germany during the 1920′s
The UK Economy
Aggregate Supply and Demand Factors in OECD Unemployment
Pc-Give
German Banking between the Wars
The Great Disorder
| Unique citing works | 6 |
|---|---|
| Citations per year | 0,26 |
| Citation span | 2003 - 2023 (21) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 6 |