The Economics and Econometrics of the Energy-Growth Nexus

Chapter 6

Practical Issues on Energy-Growth Nexus Data and Variable Selection With Bayesian Analysis

Aviral K. Tiwari^*

Anabel Forte^**

Gonzalo Garcia-Donato^†

Angeliki N. Menegaki^‡¶*    Montpellier Business School, Montpellier Cedex 4, France^**    University of Valencia, Valencia, Spain^†    University of Castilla-La Mancha, Albacete, Spain^‡    TEI STEREAS ELLADAS, University of Applied Sciences, Lamia, Greece^¶    Hellenic Open University, Patras, Greece

Abstract

Given that the energy-growth nexus (EGN) is short of a complete theoretical base, the production function used therein is typically complemented with numerous variables that characterize an economy. Researchers are often puzzled not only with the selection of variables per se, but also with ...