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Time factor in macroeconomic analysis in theory and empirical research
Corresponding Author(s) : Piotr Misztal
Humanities & Social Sciences Reviews,
Vol. 9 No. 6 (2021): November
Abstract
Purpose of the study The aim of the research is to present the role of time in economic theory and explain how time horizon and the adopted period of time lags between the variables determine the results of macroeconomic analyzes.
Methodology: In the paper were used research methods based on literature studies in the field of macroeconomics and finance as well as descriptive methods to explain how the change in the time horizon of the analysis affects the results of the research (short-term analysis and long-term analysis) and what influence the selection of a specific delay period has on the results time between the analyzed variables.
Main Findings: The research results confirmed the importance of the time factor, which is still underestimated in many economic analyzes.
Applications of this study: The research results can be used as a starting point for further analyzes regarding the importance of time in microeconomic analyzes and contribute to the development of new theoretical concepts concerning dynamic processes in the economy.
The originality of this study: In the economics literature, no comprehensive research has been carried out on the importance of time in economic analyzes. Hence, the paper can fill the existing gap in this area and realize the importance of time in economic research.
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- James, A. and Sprenger, C. (2012). Risk preferences are not time preferences. American Economic Review, 102(7), 3357–3376. https://doi.org/10.1257/aer.102.7.3357 DOI: https://doi.org/10.1257/aer.102.7.3357
- Andrew, C. (1979). Money – Theory, Policy and Institutions. Nelson.
- David, E. et al. (2012). The Volume Clock: Insights into the High-Frequency Paradigm. Journal of Portfolio Management, 39(1), 19-29. https://doi.org/10.3905/jpm.2012.39.1.019 DOI: https://doi.org/10.3905/jpm.2012.39.1.019
- Marc, F. and Zuber, S. (2013). Climate Policies deserve a negative discount rate. Chicago Journal of International Law, 13(2), 564-595.
- Marc, F and Zuber, S. (2015). Discounting beyond utilitarianism. Economics. Open-Assessment E-Journal, 9(12), 1-52. https://doi.org/10.5018/economics-ejournal.ja.2015-12 DOI: https://doi.org/10.5018/economics-ejournal.ja.2015-12
- Shane, F., Loewenstein, G., & O’Donoghue, T. (2002). Time Discounting and Time Preference: A Critical Review. Journal of Economic Literature 40 (2), 351-401. https://doi.org/10.1257/jel.40.2.351 DOI: https://doi.org/10.1257/jel.40.2.351
- Georgescu-Roegen Nicolas. (1971). The Entropy Law and the Economic Process. Harvard University Press, Cambridge. https://doi.org/10.4159/harvard.9780674281653 DOI: https://doi.org/10.4159/harvard.9780674281653
- Robert, A. J. and Protter, P. (2012). A dysfunctional role of high frequency trading in electronic markets. International Journal of Theoretical and Applied Finance, 15(3), 1-15. https://doi.org/10.1142/S0 219024912500227
- Tjalling, C. K. (1960). Stationary ordinal Utility and Impatience. Econometrica, 28(2), 287-309. https://doi.org/10.2307/1907722 DOI: https://doi.org/10.2307/1907722
- Pierce, James. (1984). Monetary and Financial Economics. John Wiley and Sons.
- Rae John (and Charles Whitney Mixter). (1905). The sociological theory of capital; being a complete reprint of the New Principles of Political Economy. New York: The MacMillan Company.
- Robinson Joan. (1980). Time in economics. Kyklos, 33(2), 219-229. https://doi.org/10.1111/j.1467-6435.1980.tb02632.x DOI: https://doi.org/10.1111/j.1467-6435.1980.tb02632.x
- Shackle George L. S. (1967). Time in economics. Amsterdam: North-Holland Publishing Company.
- John, S. & Harold, S. (1980). Money, Institutions, Theory and Policy. Longman.
- Von Mises L. (2011). Ludzkie Działanie. Instytut Ludwiga von Misesa, Warszawa.
- Wrightsman Dwayne. (1971). An Introduction to Monetary Theory and Policy. New York: The Free Press.
- Živković Aleksandar. (1993). Analiza efikasnosti monetarne politike u Jugoslaviji. Beograd: Ekonomski fakultet.
- Aleksandar, Ž., Gradimir, K. (2008). Monetarna ekonomija. Ekonomski fakultet, Beograd.
References
James, A. and Sprenger, C. (2012). Risk preferences are not time preferences. American Economic Review, 102(7), 3357–3376. https://doi.org/10.1257/aer.102.7.3357 DOI: https://doi.org/10.1257/aer.102.7.3357
Andrew, C. (1979). Money – Theory, Policy and Institutions. Nelson.
David, E. et al. (2012). The Volume Clock: Insights into the High-Frequency Paradigm. Journal of Portfolio Management, 39(1), 19-29. https://doi.org/10.3905/jpm.2012.39.1.019 DOI: https://doi.org/10.3905/jpm.2012.39.1.019
Marc, F. and Zuber, S. (2013). Climate Policies deserve a negative discount rate. Chicago Journal of International Law, 13(2), 564-595.
Marc, F and Zuber, S. (2015). Discounting beyond utilitarianism. Economics. Open-Assessment E-Journal, 9(12), 1-52. https://doi.org/10.5018/economics-ejournal.ja.2015-12 DOI: https://doi.org/10.5018/economics-ejournal.ja.2015-12
Shane, F., Loewenstein, G., & O’Donoghue, T. (2002). Time Discounting and Time Preference: A Critical Review. Journal of Economic Literature 40 (2), 351-401. https://doi.org/10.1257/jel.40.2.351 DOI: https://doi.org/10.1257/jel.40.2.351
Georgescu-Roegen Nicolas. (1971). The Entropy Law and the Economic Process. Harvard University Press, Cambridge. https://doi.org/10.4159/harvard.9780674281653 DOI: https://doi.org/10.4159/harvard.9780674281653
Robert, A. J. and Protter, P. (2012). A dysfunctional role of high frequency trading in electronic markets. International Journal of Theoretical and Applied Finance, 15(3), 1-15. https://doi.org/10.1142/S0 219024912500227
Tjalling, C. K. (1960). Stationary ordinal Utility and Impatience. Econometrica, 28(2), 287-309. https://doi.org/10.2307/1907722 DOI: https://doi.org/10.2307/1907722
Pierce, James. (1984). Monetary and Financial Economics. John Wiley and Sons.
Rae John (and Charles Whitney Mixter). (1905). The sociological theory of capital; being a complete reprint of the New Principles of Political Economy. New York: The MacMillan Company.
Robinson Joan. (1980). Time in economics. Kyklos, 33(2), 219-229. https://doi.org/10.1111/j.1467-6435.1980.tb02632.x DOI: https://doi.org/10.1111/j.1467-6435.1980.tb02632.x
Shackle George L. S. (1967). Time in economics. Amsterdam: North-Holland Publishing Company.
John, S. & Harold, S. (1980). Money, Institutions, Theory and Policy. Longman.
Von Mises L. (2011). Ludzkie Działanie. Instytut Ludwiga von Misesa, Warszawa.
Wrightsman Dwayne. (1971). An Introduction to Monetary Theory and Policy. New York: The Free Press.
Živković Aleksandar. (1993). Analiza efikasnosti monetarne politike u Jugoslaviji. Beograd: Ekonomski fakultet.
Aleksandar, Ž., Gradimir, K. (2008). Monetarna ekonomija. Ekonomski fakultet, Beograd.