nonlinear dynamics in deviations from the law of one price a broad based empirical study abstract in this paper we test empirically the validity of the law of one price using data for five major bilateral us dollar exchange rates and nine goods sectors during the recent floating exchange rate regime since the early 1970s using threshold autoregressive models we find strong evidence of nonlinear mean reversion in deviations from the law of one price with plausible convergence speeds consistent with theoretical arguments on international goods markets arbitrage under transactions costs and with an emerging strand of empirical literature these results contribute towards forming a consensus view in favor of discrete regime switching in deviations from the law of one price and the presence of differing nonzero transactions costs across a broad range of goods and countries

ripple effects in south african house prices this paper analyses the ripple effect of house prices in large medium and small sized houses of five major metropolitan areas of south africa namely cape town durban unicity greater johannesburg port elizabeth uitenhage and pretoria based on available quarterly data covering the period of 1966 q1 to 2010 q1 following the extant literature the issue is contextualised as a unit root problem with one expecting the ratios of metropolitan house price to national house price to exhibit stationarity to an underlying trend value if there is diffusion in house prices using bayesian and non linear unit root tests besides the standard linear tests of stationarity with and without structural break overwhelming support is found for the existence of robust ripple effects also factor analysis conducted suggested that ripple effects originate in cape town for the large housing segment and in durban for the medium and small sized houses

an application of two non parametric techniques to the prices of british dwellings an examination of cyclicality using a pesaran timmermann test of co movement cook and watson cook s and watson d 2015 a new perspective on the ripple effect in the uk housing market co movement cyclical subsamples and alt

real exchange rate behaviour evidence from black markets the behaviour of real exchange rates relative to the us dollar is examined using monthly data obtained from the black markets for foreign exchange of eight asian developing countries the data span is 31 years the black market real exchange rates do not show excess volatility during the recent float which is in sharp contrast to the results reported elsewhere unit root tests in heterogeneous panels and variance ratio tests confirm their stationarity thus we find support for ppp but not for the survivorship bias froot and rogoff 1995 there is little evidence of segmented trends issues raised by rogoff 1996 of whether ppp would hold across countries with differing growth experience and lothian and taylor 1996 of whether the degree of relative price volatility may bias results in favour of mean reverting real exchange rates are addressed copyright 2000 john wiley sons ltd

pairwise convergence of district level house prices in london this paper investigates the long run convergence of district level house prices in greater london using the recently developed pairwise approach this methodology allows for unit root tests to be conducted on all n n 1 2 possible pairs of house price differentials across the n boroughs of london thus avoiding the need to choose a base borough of reference or the regional average as the benchmark it also permits the estimation consistently of the proportion of the pairs that are stationary and convergent using hm land registry house price data for 33 inner and outer london boroughs over the period 1996q1 2009q2 no overall multidistrict long run convergence is found some evidence of district level segmentation of house prices in greater london is found with the sub group of the boroughs contiguous to the city of london district and the wider central sub market emerging as the clubs with the highest rate of convergence

the black market exchange rate vs the official rate in testing ppp which rate fosters the adjustment process abstract in testing the purchasing power parity theory ppp researchers hardly pay attention to the speed with which the exchange rate adjusts to a change in relative prices in this paper we show that the speed of adjustment is faster when the black market exchange rate is used in testing the ppp as compared to the official exchange rate this could be another reason as to why central banks should unify the two rates

climbing the property ladder an analysis of market integration in london property prices we investigate the long run convergence of house prices across the london boroughs based on a pairwise unit root probabilistic testing procedure in sharp contrast to the earlier literature we emp

brazil us commodity trade and the j curve currency devaluation or depreciation is said to temporarily worsen a country s trade balance and improve it later an effect that is called the j curve previous research that tested the j curve for brazil used the country s aggregate trade flows with the rest of the world and did not find support for the phenomenon in this article we consider the trade flows between brazil and a major trading partner the united states disaggregating their trade flows by commodity we then test the empirical validity of the j curve for each of the 92 industries that trade between the two countries we find support for the phenomenon in 31 industries therefore disaggregation by industry seems to yield some support for the phenomenon

the impact of economic and monetary uncertainty on the demand for money in emerging economies by introducing uncertainty monetary volatility and economic volatility are said to make the public cautious hence increase their cash holdings or their demand for money on the other hand because of monetary and economic uncertainty if the public seek safer assets than money they may hold less cash in the absence of any paper testing for the impact of economic and monetary uncertainty on the demand for money in emerging economies this article fills the gap by considering the experiences of six central and eastern european emerging economies and four other emerging economies we found that the impact is transitory in most countries moreover money demand is found correctly specified and stable in most countries suggesting that policy based on monetary targeting could still be effective despite significant output and monetary uncertainty

spillover effect between the regional and the national housing markets in the uk tsai i c spillover effect between the regional and the national housing markets in the uk regional studies this study uses regional and national data from the uk housing market to analyse the spillovers between these markets and to test whether a ripple effect exists in uk housing prices cross market return spillovers are determined by performing spillover indices an analysis of the direction and magnitude of return spillovers can be used to discriminate the transmission mechanism of information between the regional and the national housing markets over different areas and different time spans empirical findings indicate that the difference in housing prices between the northern and southern regions of the uk will increase each time a new financial crisis occurs

purchasing power parity in the long run a test of the dollar pound exchange rate 1890 1978 this paper tests the purchasing power parity ppp hypothesis by analyzing t he long run tendency of the dollar pound exchange rate using data sin ce 1890 two different models are considered 1 a na ive model and 2 a modified monetary model the conditions of propor tionality and symmetry cannot be rejected when using the naive model the final results using the monetary model however indicate that t he existence of permanent deviations from ppp cannot be ruled out copyright 1987 by ohio state university press

impact of exchange rate uncertainty on trade flows evidence from commodity trade between the united states and the united kingdom previous studies that investigated the impact of exchange rate volatility on the trade flows employed aggregate trade data and standard estimation techniques they provided mixed results in this paper we use disaggregated import and export data for 177 commodities traded between the united states and the united kingdom to investigate whether volatility of the real bilateral dollar pound exchange rate has any detrimental effect on trade flows at the commodity level additionally we employ the bounds testing approach to cointegration and error correction modelling that is suitable for the models used mostly because it does not require pre unit root testing and variables in the model could be stationary non stationary or a combination of the two in most trade flow models estimated we found a negative effect of exchange rate volatility on commodity trade

spatial dynamics of the housing market an interurban perspective a major unproven hypothesis in housing economics is that regional ripple effects are caused by household migration between regions this paper examines household migration and price ripples at the level of local housing markets driven partly by the fact that such migration linkages are likely to be more pronounced between local rather than regional housing markets following a review of regional housing market studies several hypotheses linking the existence of lead lag relationships and cointegration with the scale of migratory linkages between local housing market areas lhmas are proposed using private housing transactions data for strathclyde a sub region of scotland the paper identifies two clusters of lhmas that differ in terms of their migratory linkages with glasgow the hypothesised leading housing market of the sub region tests for lead lag relationships and cointegration confirm the link between migration and house price changes

financial market development and trade openness evidence from emerging economies international trade is said to be the engine of economic growth despite an enormous effort to explain this phenomenon the relationship between financial market development and trade openness and integration into the world economy is still an enigma this article investigates the relationship between financial market development and trade openness to do this we develop a long run and short run model a bounds testing approach to cointegration for 18 emerging economies over the period 1980 to 2011 estimates from all models show that financial market development including both the stock market and the banking sector has significant effect on trade openness in both short run and long run phenomena in the majority of countries despite many similarities among emerging economies additional evidence suggests that the link between either stock market development or banking sector development with trade openness works via each country s specific structure

market rivalry and learning by doing abstract the failure to link learning by doing to its market effects and the complementary failure to consider market models in which competition extends to the search for cost efficiency can have unfortunate implications for economic policy this paper considers how the firm s equilibrium investment in learning arises in a two period oligopoly implications of these results for the manufacture of high technology products particularly by japanese semiconductor firms are developed

testing for long run convergence across regional house prices in the uk a pairwise approach this article tests for stochastic convergence in uk regional house prices using the recently developed pairwise approach this approach allows for unit root tests to be conducted on all n n 1 2 possible pairs of house price differentials across n regions in the uk thus avoiding the need to choose a base region or alternative national figure as the benchmark using mix adjusted house price data from 1973 q4 to 2008 q4 the main finding is that there is no evidence of long run convergence among regional house prices or of an equilibrium relationship towards which uk regional house prices have a tendency to gravitate

real exchange rate behavior in the middle east a re examination abstract this letter extends recent work by bahmani oskooee bahmani oskooee m do exchange rates follow a random walk process in middle eastern countries economics letters 1998 58 339 344 on testing long run purchasing power parity for middle eastern countries during the post bretton woods period using multivariate nonlinear models strong support is provided for highly nonlinear reversion of real exchange rates toward a stable equilibrium for each country examined

a multi level analysis of the variations in domestic property prices southern england 1980 87 it is argued that previous research on spatial variations in domestic property prices has failed to consider the multi level nature of the problem in describing underlying temporal trends and spatial patterns at the macro level it is necessary to take account of the attributes of individual properties at the micro level as an empirical illustration of the general approach a number of models are calibrated for southern england using sample data derived from building society mortgages

war news and black market exchange rate deviations from purchasing power parity wartime south vietnam abstract this study evaluates the impact of war news on black market exchage rate deviations from purchasing power parity ppp in wartime vietnam the greater the number and intensity of u s troop engagements with the enemy the greater the confidence in the south vietnamise government and its fist currency during the period of heaviest u s military operations from 1967 to mid 1969 about 20 25 percent of the value of the piaster on the black market can be attributed to this confidence factor the results suggest that where variables to measure the news are available short run deviations from ppp can be readily explained

the modern history of exchange rate arrangements a reinterpretation we develop a novel system of reclassifying historical exchange rate regimes one key difference between our study and previous classifications is that we employ monthly data on market determined parallel exchange rates going back to 1946 for 153 countries our approach differs from the imf official classification which we show to be only a little better than random it also differs radically from all previous attempts at historical reclassification our classification points to a rethinking of economic performance under alternative exchange rate regimes indeed the breakup of bretton woods had less impact on exchange rate regimes than is popularly believed

unit roots and structural change an application to us house price indices this paper employs time series analysis to investigate the price dynamics of the house price indices included in the s p case shiller composite10 index and the validity of the ripple effect following the approach outlined by meen 1999 more specifically the paper first considers the time series properties of the capital gain from the sale of houses that is it examines whether shocks to the capital gain series produce permanent or transitory changes in general the findings lack uniformity and depend upon the assumptions imposed by the testing procedures secondly it considers the time series properties of the ratio of regional house price indices to the composite10 index that is it examines whether shocks to these house price ratios exhibit trend reversion the tests of this ripple effect also display conflicting evidence

regional migration in britain an analysis of gross flows using nhs central register data the authors extend the use of a hiring function model whereby job seekers are matched with vacancies to the analysis of regional migration in britain annual data from the national health service central register for 1975 1989 are used to show that unemployment and vacancy rates distance and an index of similarities across regions in industry based employment composition help determine migration flows across regions the hiring function approach offers a consistent way of modelling gross and net flows and helps explain both the high level of gross relative to net flows and the tendency for migration to fall in a recession even when unemployment differentials widen excerpt

the spatial and temporal diffusion of house prices in the uk abstract this paper provides a method for the analysis of the spatial and temporal diffusion of shocks in a dynamic system we use changes in real house prices within the uk economy at the level of regions to illustrate its use adjustment to shocks involves both a region specific and a spatial effect shocks to a dominant region london are propagated contemporaneously and spatially to other regions they in turn impact on other regions with a delay we allow for lagged effects to echo back to the dominant region london in turn is influenced by international developments through its link to new york and other financial centers it is shown that new york house prices have a direct effect on london house prices we analyse the effect of shocks using generalised spatio temporal impulse responses these highlight the diffusion of shocks both over time as with the conventional impulse responses and over space

differing house price linkages across uk regions a multi dimensional recursive ripple model the aim of this study is to determine the nature of the relationship between house prices of different types of housing across the uk regions we use an autoregressive distributed lag bounds testing approach to determine the long run relationships between house prices as well as an error correction model to estimate the short run dynamics between house prices the data include house prices across the regions of great britain and for new old and modern houses the results suggest that house price shocks ripple across regions although the nature of the relationship varies across housing types we further simulate the impact of house price shocks and reveal a complex structure whereby a house price shock in region a impacts upon prices in other regions which in turn feedback into region a in a recursive ripple

are asian real exchange rates stationary by applying the newly developed nonlinear stationary test advanced by kapetanios et al journal of econometrics 112 2003 359 in examining the stationary property of 11 asian real exchange rates this paper rejects unit root in 8 us dollar based and 6 japanese yen based rates whereas the augmented dickey fuller adf test has led to no rejection at all

regional house price interactions in the uk 1975 81 a cross spectral analysis 1986 regional house price interactions in the uk 1975 81 a cross spectral analysis applied economics vol 18 no 9 pp 1011 1023

the place of the capability approach within sustainability economics the connections between the capability approach and sustainability economics have been explored recently i argue here that for engaging in a more substantive study of those connections we must first understand the place of the capability approach within the history of economic thought as a second stage of the revival of classical surplus theory once this is clear we can then use the capability approach in order to specify concepts such as well being surplus scarcity and sustainable reproduction which are essential for the development of sustainability economics

the relevance of epistemic analysis to sustainability economics and the capability approach abstract this paper considers how epistemic analyses birkin and polesie 2011 foucault 1970 foucault 1990a foucault 1990b may assist with the development of sustainability economics bartelmus 2010 baumgartner and quaas 2010a baumgartner and quaas 2010b and soderbaum 2011 and the capability approach ballet et al 2011 martins 2011 rauschmayer and lesmann 2011 scerri 2012 it was the french social theorist michel foucault 1926 1984 who coined the term episteme to refer to the possibility of knowledge that determines the development of thought and knowledge in a given period for foucault epistemes were the buried foundations of knowledge that his epistemic archaeology could unearth in 2007 foucault was identified as the most cited author of books in the humanities by thomson reuters isi web of science this paper begins with a brief definition and description of epistemic analyses a summary analysis of the modern episteme and neoclassical economics is then provided and this is followed by outline evidence for the emerging episteme finally the opportunity is considered for the emerging episteme to reinforce and enhance sustainability economics and the capability approach

an empirical analysis of the determination of house prices in the united kingdom between the first quarters of 1970 and 1980 the average price of new houses in the united kingdom increased five fold over the same period building societies grew to become major financial institutions attracting almost 50 per cent of the personal sector s holdings of liquid assets and responsible for more than 85 per cent of house purchase finance this paper sets out to examine the extent to which building societies have been responsible for the rapid acceleration of house prices and indicates the other main determinants of this phenomenon the analysis is extended to a discussion of recent econometric research into house price determination and arrives at a more general specification employing an error correction estimation methodology

a regional comparison of house price inflation rates in britain 1967 76 the paper presents by using regionally disaggregated data for the british economic planning regions some questions on the usefulness of current macro oriented approaches to the modelling of house price inflation the paper indicates that such models should be restricted in their use to national levels it argues that a more disaggregated approach to the analysis of house price changes would not only be locally useful but would take account of housing research on the micro level

inequality sustainability and piketty s capital abstract in this article i address the implications of thomas piketty s book capital in the twenty first century for our understanding of inequality and sustainability drawing upon amartya sen s capability approach and the revival of classical political economy it brings i argue that piketty s contribution is a significant one which has the potential to lead economic analysis in a more fruitful direction but its potential becomes much greater if its empirical analysis is combined with the revival of classical political economy undertaken by sen and other authors rather than with marginalist theory

ecosystems strong sustainability and the classical circular economy abstract in this article i argue that notions such as ecosystem services and strong sustainability can be best understood and developed within the theoretical framework advanced by the classical political economists in which a circular conception of the economy is provided i also argue that the development of notions such as ecosystem services and strong sustainability has been constrained by the dominance of neoclassical economics which provides a linear conception of the economy and leads to an emphasis on weak sustainability which in turn springs from an emphasis on substitutability and aggregate capital when assessing the relevance of classical political economy for studying ecosystem services and strong sustainability i consider not only the contributions of the classical political economists but also more recent contributions which draw upon the classical perspective such as piero sraffa s and amartya sen s

a new perspective on the ripple effect in the uk housing market comovement cyclical subsamples and alternative indices an alternative perspective is provided on the existence of a ripple effect in the uk housing market in contrast to previous studies the analysis involves consideration of information on the changes in house prices to which the hypothesis of house price diffusion posited by the ripple effect relates rather than their levels in an examination of changes in house prices in london relative to other regions of the uk directional forecasting methods are employed to establish the extent of the relationship between geographical proximity and comovement across the three month window provided by quarterly data consequently the analysis provides a direct examination of the ripple effect which refers to changes in prices rather than the convergence of levels which has become a feature of the empirical literature the literature is extended further by both the application of dating techniques to perform the analysis across cycles and phases of cycles recovery and recessionary periods in the uk housing market

do exchange rate changes have symmetric or asymmetric effects on the demand for money in turkey as a result of the research conducted by nobel laureate robert mundell 1963 most studies estimating the demand for money today do include the exchange rate in their specification to account for currency substitution previous studies that did this for the turkish demand for money assumed that exchange rate changes do have symmetric effects on the demand for money in turkey in this article we question this assumption by using the nonlinear ardl approach we show that indeed exchange rate changes do have short run and long run asymmetric effects on the m1 demand for money introducing nonlinearity also yields a stable money demand

medium term cycles and housing is regional integration different drehmann et al drehmann m borio c and tsatsaronis k 2012 characterising the financial cycle don t lose sight of the medium term bis working papers no 380 bank for international settlement

regional housing price cycles a spatio temporal analysis using us state level data kuethe t h and pede v o regional housing price cycles a spatio temporal analysis using us state level data regional studies a study is presented of the effects of macroeconomic shocks on housing prices in the western united states using quarterly state level data from 1988 1 to 2007 4 the study contributes to the existing literature by explicitly incorporating locational spillovers through a spatial econometric adaptation of vector autoregression spvar the results suggest these spillovers may granger cause housing price movements in a large number of cases spvar provides additional insights through impulse response functions that demonstrate the effects of macroeconomic events in different neighbouring locations in addition it is demonstrated that including spatial information leads to significantly lower mean square forecast errors kuethe t h et pede v o la variation cyclique regionale du prix du logement une analyse geographico temporelle des donnees sur les etats aux e u regional s

the j curve and nafta evidence from commodity trade between the us and mexico the north american free trade agreement nafta was predicted to have a substantial impact on the us mexico trade especially on specific importing and exporting industries in this article we use annual industry level export and import data from 1962 to 2004 to discern both the short and long run effects of real exchange rate depreciation on the mexico us trade balance as well as the effects of nafta on this trade we find that peso depreciation has a positive long run effect on 24 of 102 mexican industries and a negative short run effect on 19 of 102 industries only a small fraction 7 of 102 industries show any support for the j curve hypothesis nafta has had a significant effect on a significant number of the industries however

is there long run convergence among regional house prices in the uk this paper investigates the long run convergence of regional house prices in the uk existing studies have failed to reach a consensus on whether or not regional house prices exhibit long run convergence with each other the application is proposed of a new test involving unit root testing of the first principal component based on regional national house price differentials using mix adjusted quarterly data for 1973 2006 it is found that the first principal component is stationary this suggests that all uk regional house prices are driven by a single common stochastic trend further analysis suggests that those regions that are more distant from london exhibit the highest degrees of persistence with respect to deviations in house price differentials

the dynamic connectedness of uk regional property returns in this study we examine the network topology of uk regional property returns over the period 1973q4 2014q4 using a dynamic measure of connectedness developed by diebold and yilmaz 2014 overall

land price diffusion across borders the case of germany land market regulations are often justified by the assumption that activities of foreign and non agricultural investors drive up prices in domestic land markets however empirical knowledge about

cointegration and tests of purchasing power parity nonstationarity in the levels of spot exchange rates and domestic and foreign price indices makes the use of conventional tests of the absolute version of purchasing power parity ppp inappropriate if ppp is true inter country commodity arbitrage ensures that deviations from a linear combination of spot exchange rates and domestic and foreign price levels should be stationary under these conditions exchange rates and price levels should form a cointegrated system we find the null hypothesis of no cointegration cannot be rejected for all five countries thus violating the long run absolute version of ppp

ends in view the capabilities approach in ecological sustainability economics while traditional scientific endeavor seeks to avoid the problem ecological economics and the broader emergent field of sustainability economics e se are explicitly grounded in a particular ethico moral assertion one that defines sustainability as a normative notion about the way how humans should act towards nature and how they are responsible towards one another and future generations baumgartner and quaas 2010 p 445 thus e se is neither a purely positive science nor is it a purely normative endeavor but it is what has been called relevant science baumgartner and quaas 2010 p 447 a key objective of e se is therefore said to be to study how ecosystems and human activity interrelate in terms that extend beyond functional and descriptive analysis of this interrelationship and towards explicitly incorporating this normative vision the result that is aimed for is a discipline that is constituted as the best possible approach to the science and management of sustainability

seasonality and cointegration of regional house prices in the uk the data generation process underlying regional house prices in the uk is investigated using new statistical tests it is found that causal flows tend to be northwards the south east rather than greater london acts as an exogenous price determinator of the other regions in the south the midland regions have a great influence on prices in the north and flows through the east midlands are characterised by bi directional causality these results are largely independent of assumptions made about the data generation process and tests of these assumptions have low power in any case there are also similarities between this causality and migration patterns particularly in the south of england

the j curve malaysia versus her major trading partners currency depreciation is said to worsen the trade balance before improving it hence the j curve phenomenon since introduction of cointegration and error correction modelling researchers have tried to distinguish the short run effects of currency depreciation from its long run effects a few studies that have investigated the experience of malaysia have relied upon aggregate trade data and have found no strong support for a significant relation between the real value of the ringgit and the malaysian trade balance in this article we disaggregate the data by country and consider malaysia s bilateral trade balance with her 14 largest trading partners using bound testing approach to cointegration and error correction modelling we provide some support for the j curve hypothesis

black market exchange rate and the productivity bias hypothesis abstract previous studies that tested the productivity bias hypothesis employed the official nominal exchange rate in constructing the real rate hence in testing the productivity bias hypothesis in this paper we show that if official real exchange rate does not support the productivity bias hypothesis the real black market rate does this conjecture is tested by using data from chile colombia and costa rica

regional uk house price co movement cyclical synchronization of home prices has important implications for monetary and other policies regional house price divergence even over a business cycle can inhibit labour mobility and pr

do changes in the fundamentals have symmetric or asymmetric effects on house prices evidence from 52 states of the united states of america abstracttime series studies that have tried to establish the long run relationship between house prices and economic fundamentals have been criticized due to low power of their cointegration tests on the other hand those who have used panel data and panel tests to increase the power have found mixed results both groups have assumed that changes in the fundamentals have symmetric effects on house prices in this article we use nonlinear ardl approach to cointegration and error correction modelling and quarterly data from each of the states in the us to show that changes in the fundamentals have asymmetric effects on house prices in the short run as well as in the long run cointegration between house prices and fundamentals is established in 30 states and in district of columbia

the demand for building society mortgage finance in northern ireland and scotland holmes m j 1993 the demand for building society mortgage finance in northern ireland and scotland reg studies 27 103 108 utilizing a limited sample size of annual observations this study explains the demand for building society advances for house purchase in northern ireland and scotland for the period 1970 89 the study assesses the nature of mortgage rationing present in the 1970s and early 1980s and concludes that equilibrium rationing was the prevalent form equating effective demand and supply while the respective determinants of regional mortgage demand are compared it would appear that variations in gdp and loan value ratios rather than adjustments in mortgage rates are relatively more potent influences on mortgage demand holmes m j 1993 la demande de pr ts hypothecaires aux societes de credit immobilier en irlande du nord et en ecosse reg studies 27 103 108 a partir d un echantillon limite d observations annuelles cette etude explique la demande de pr ts hypothecaires aux soci

banking sector development and interest rate volatility in emerging economies over the last decades macroeconomic stability is said to be one of the major concerns of emerging economies financial sector as a core of macroeconomic stability has been under close consideration of policy makers the relationship between interest rate uncertainty and banking sector development as one of the most important indicators of financial sector development especially for emerging economies has not received enough attention in the literature perhaps this article is the most comprehensive study that investigates the relationship between interest rate uncertainty and banking sector development for a large group of emerging economies to do this the short run and long run models using a bounds testing approach to cointegration for 12 emerging economies over the period 1980 2011 have been developed estimated results from all models indicate that interest rate uncertainty has significant effect on banking sector development in both short run and long run phenomena in the majority of countries

regional heterogeneity and the trans regional interaction of housing prices and inflation evidence from china s 35 major cities this paper proposes a theoretical framework to analyse the regionally heterogeneous responses of housing prices and inflation to the monetary aggregates shock and the trans regional interaction of housing prices and inflation which has seldom been discussed in previous literature using a gvar globe vector autoregression model evidence based on china s 35 major cities for this framework is provided the results show that 1 the housing price shocks have weak positive influence on cpis consumer price index 2 the housing price shocks especially the shocks in first tier cities and eastern cities have strong positive influence on domestic housing price dynamics and housing prices of other cities 3 monetary aggregates shock has strong influence on the housing prices of first tier cities and eastern cities while weak influence on that of central and western cities cpis are barely influenced by monetary aggregates shocks the empirical results are in accordance with the theoretical explanation

the impact of income economic openness and interest rates on housing prices in china evidence from dynamic panel quantile regression the rapid growth of housing prices has attracted the attention of the whole of society in china this article adopts the dynamic panel quantile regression to investigate the impact of income econo

do malaysian house prices follow a random walk evidence from univariate and panel lm unit root tests with one and two structural breaks in this article we apply univariate and panel lagrange multiplier lm unit root tests with one and twostructural breaks proposed by lee and strazicich 2003 2004 and im et al 2005 to examine housing prices for five different housing price indices all housing detached housing semi detached housing terrace housing and high rise housing in 14 states of malaysia to test whether housing prices exhibit a random walk our main finding from the univariate lm unit root tests is that for the vast majority of states housing prices follow a stationary process about a segmented trend the results of the panel lm unit root tests provide overwhelming evidence that house prices are segmented trend reverting

between ostrom and nordhaus the research landscape of sustainability economics abstract we survey the emerging research area of sustainability economics through a quantitative full text analysis of peer reviewed journal publications from 1987 to 2013 to identify relevant contributions we draw on existing definitions of sustainability economics for a keyword based identification strategy a combined focus on a the human nature relationship b the long term uncertain future c normative orientation towards sustainability and d economic analysis our analysis of a random subsample of 343 relevant papers reveals that i sustainability economics is a rapidly developing research area ii while theoretical contributions shaped the area in earlier years applied work now constitutes the largest share of contributions iii the research landscape can be clustered into eleven research clusters these range from participatory governance of social ecological systems associated with the work of elinor ostrom to questions of intertemporal allocation and distribution applied to climate economics associated with the work of william nordhaus iv the research area is broad in scope and heterogeneous and there is relatively little interaction between important clusters v relevant contributions are published in more than 100 journals ten journals publish half of all contributions led by ecological economics and 40 appear in non economics journals underscoring the importance of interdisciplinary dialogue

long memory and fractional integration in the housing price series of london and paris this article deals with the analysis of house price indexes from a long range dependence viewpoint in particular it estimates the fractional differencing parameter in the london and paris house price series recognizing in some cases the potential seasonality and allowing for breaks in the data moreover it analyses the stability of the parameters across the sample period examined it is concluded that the series are nonstationary but mean reverting in some cases and very persistent in others policy implications are derived

on the impact of financial development on income distribution time series evidence financial market development is said to have equalizing or unequalizing effects on income distribution previous research used cross sectional and panel data and provided mixed results suspecting that they suffer from aggregation bias we adhere to time series data and error correction modeling technique and address the issue one more time in each of the 17 countries for which we have time series data in 10 counties short run effects of financial market development on income distribution were found to be equalizing in five countries the effects were unequalizing however the equalizing effects lasted into the long run only in three countries of denmark kenya and turkey

do exchange rates follow a random walk process in middle eastern countries abstract in this note we employ the kpss test in addition to the adf test to determine whether the real effective exchange rates in middle eastern countries follow a random walk process or they are stationary while in most cases the kpss test supported the stationary of the real effective rates thus the ppp the adf test did not the failure to support the ppp by the adf test is said to be due to its low power

regional spillover and rising connectedness in china s urban housing prices regional housing prices may be dynamically linked and converge to a long run equilibrium the level of connectedness can be used to describe systemic risk in the housing market this paper uses a r

regional house prices and the ripple effect in malaysia this paper applies univariate and panel lagrange multiplier lm unit root tests with one and two structural breaks to the ratio of the regional to national house price to examine the ripple effect for five different housing price indices aggregate housing detached housing semi detached housing terrace housing and high rise housing across 14 regional locations in malaysia segmentation is restricted to a small group of states across most housing types for which there is no long run relationship with the malaysian average when all housing types are taken together evidence of a ripple effect is generally found from the most developed states to the less developed states of malaysia while overall rates of conversion to the long run equilibrium are consistent with a low level of persistence there is some evidence of regional clusters based on similar speeds of adjustment in different parts of the country

commodity trade between pakistan and the us is there evidence of the j curve abstracta few studies that have attempted to estimate the short run j curve and long run impact of exchange rate depreciation on pakistan s trade balance are either based on aggregate trade data between pakistan and the rest of the world or between pakistan and her bilateral trading partners the findings are mixed at best considering the trade balance between pakistan and the us as one of its major partners no significant effects have been discovered suspecting that the trade flows between the two countries could suffer from another aggregation bias we disaggregate their trade flows by commodity and consider the trade balance of 45 industries that trade between the two countries we find significant short run effects of currency depreciation on the trade balance of 17 industries the short run effects last into the long run in 15 cases the largest industry that account for more than 10 of the trade seems to benefit from real depreciation in the long run

the classical circular economy sraffian ecological economics and the capabilities approach abstract here i provide some further elaborations on the idea of a classical circular economy and its articulation with the capabilities approach this enables addressing some important questions raised by yoann verger 2017 when commenting on the idea of a classical circular economy as outlined in martins 2016 while advancing the basis for a sraffian ecological economics to understand the connections between sraffa s economic theory and the classical circular economy discussed by verger 2017 an essential aspect to be addressed here is sraffa s interpretation of the classical conception of the wage which can be fruitfully addressed in terms of the capabilities approach as suggested by vivian walsh 2000

purchasing power parity in the long run a cointegration approach this paper utilizes cointegration analysis to examine purchasing power parity relationships over a long time horizon the results indicate that the exchange rate is cointegrated strongly with the wholesale price index ratio and somewhat weakly with the consumer price index ratio the cointegrating coefficient between the exchange rate and the price ratio is close to one when cointegration is confirmed the hypothesis that the real exchange rate follows a random walk is rejected in most cases finally a new test for common trends finds no such common trends in exchange rates or price ratios copyright 1990 by ohio state university press

the convergence of regional house prices in the uk the ripple effect hypothesis implies a long run convergence of regional uk house prices however despite many authors believing in the existence of such an underlying constancy statistical evidence has yet to be presented supporting this implication in this paper an alternative approach is proposed to analyse regional house price ratios in contrast to the findings of previous studies application of this new procedure results in the detection of widespread convergence of house prices in a number of regions of the uk the results suggest that the failure of previous analyses to uncover convergence is due to an underlying asymmetry in the adjustment process being ignored interestingly the form of asymmetry detected varies between regions while regions in the south east experience faster convergence following downswings in prices other regions exhibit more rapid convergence following increases in prices

the effects of american and japanese style employment and compensation practices on innovation success in the global marketplace increasingly requires that firms develop capabilities in innovation in this paper we argue that firms can use employment and compensation practices to foster innovation and support for innovation by employees conversely some employment and compensation systems will inhibit innovation a system that allows gain sharing by employees and provides employment assurance will foster innovation in the firm however a system that compensates employees with a fixed wage and allows for termination at will contains anti innovative incentives the former system is the prototypical japanese system particularly in large firms while the latter system is the prototypical american system the commercial success of japanese firms is increasingly attributed to successful innovation particularly in processes we argue that this success is partly attributable to the japanese style system of employment and compensation none of this suggests however that the japanese style practices c

parity reversion in the asian real exchange rates new evidence from the local persistent model this article investigates the time series properties of 13 asian real exchange rates rers vis a vis the us dollar the half life point estimates drawn from the local persistent model are all less than 2 years with a finite upper bound there is no evidence to indicate that the asian financial crisis has altered the speed of the purchasing power parity ppp adjustments we find that the persistence of rers over the last three decades remains unchanged in majority of the cases given the fairly rapid speed of adjustments and their corresponding confidence intervals we conclude that the ppp puzzle does not exist in these countries

regional house price convergence in spain during the housing boom the aim of this paper is to identify convergence clubs in house prices among spanish regions over the period 1995 q1 to 2007 q4 and to investigate which factors are responsible for club formation employing a novel regression based convergence test proposed by phillips and sul 2007 we find that regional house prices do not converge to a common trend which confirms the existence of some degree of segmentation in the spanish housing market the research results support the existence of convergence clubs indicating that spanish regions form four separate groups that converge to different house price levels results of an ordered logit model suggest that differences in population growth size of the rental market initial house supply and geographical situation have played a crucial role in determining club membership

real exchange rate behavior the recent float from the perspective of the past two centuries using annual data spanning two centuries for dollar sterling and franc sterling real exchange rates we find strong evidence of mean reverting real exchange rate behavior using simple stationary autoregressive models estimated on prefloat data we easily outperform nonstationary real exchange rate models in dynamic forecasting exercises over the recent float such stationary univariate equations explain 60 80 percent of the in sample variation in real exchange rates although the degree of short run persistence may be high the econometric estimates imply a half life of shocks to the real exchange rate of about 6 years for dollar sterling and a little under 3 years for franc sterling

purchasing power parity in the presence of foreign exchange black markets the case of india the empirical validity of b ppp eb as a long run constraint between india and the us is examined in the preesence of foreign exchange black markets in a triariate model the official exchange rate is found to be coinergrated with both the price ratio and the black market exchange rate both the official exchange rate and price ratio respond to correct short run departures from b ppp eb also both the official and the black market exchange rates respond to correct departures from their own equilibrium relation the two sources of endogeneity in the official rate follow rate follow as indian authorities aimed to stabilize domestic prices and reduce uncertainty about the dollar price of rupees

impact of exchange rate uncertainty on commodity trade between us and sweden previous studies that investigated the effects of exchange rate uncertainty on the trade flows of sweden employed aggregate trade data either between sweden and the rest of the world or at bilateral level between sweden and her major trading partners in this article we disaggregate the trade data and employ the import and export data from 87 industries that trade between sweden and the us we find that exchange rate volatility has significant short run effects on the trade flows between the two countries in almost two third of the industries however the short run effects are translated into the long run effects in one third of the cases furthermore the real depreciation of krona against the dollar was found to have favourable effects on the overall trade balance between the two countries

asymmetric responses of house prices to changes in the mortgage interest rate evidence from the australian capital cities we examine the dynamic and asymmetric responses of house prices to changes in mortgage interest rates in australia from january 1995 to november 2017 we propose a threshold intervention model to d

convergence and divergence in british housing space abstractthe degree of convergence that exists among british house prices is an open question inferences vary with the method applied and periods considered using the rank of the cointegrating matrix among four decades of regional data two contiguous groups of regions are revealed these super regions have some common members through which price changes are transmitted from south to north with london found to be deviating from the south east neither it nor the uk are likely to be indicative of the regional series of the south of england

a note on sustainability economics and the capability approach sustainability economics attempts to reconcile efficiency criteria with those of social justice in a context of environmental concern this article aims at highlighting the fact that the capability approach offers an interesting perspective for the foundation of sustainability in economics it primarily focuses on the major role that freedom brings as a normative basis for well being and adds new insights for our understanding of human and environment relationship through the study of the constraints and opportunities that affect the individual the final section of this article asks us to reconsider our nature conservation choices by acknowledging the restrictive impact that they have on individual freedoms

environment justice and the capability approach in recent years several studies have attempted to combine the capabilities approach with sustainable development however critics have pointed out that although the capability approach takes the environment into account it has its shortcomings for not being a complete ethical theory our article attempts to go beyond these criticisms and show that the capabilities approach provides a good analytical framework for an environmental justice approach

a test of purchasing power parity based on the largest principal component of real exchange rates of the main oecd economies abstract a unit root test is used to reject non stationarity of the largest principal component of nine oecd bilateral real exchange rates over the recent float hence support for purchasing power parity ppp over this period is obtained using a standard classical hypothesis test

incorporating daily market uncertainty data into a conventional short run dynamic model the case of the black market exchange rate in iran the effect of market uncertainty on a country s currency while widely recognized is either omitted from mainstream models or addressed using low frequency series which are typically subject to a

testing for convergence between uk regional house prices drake l 1995 testing for convergence between uk regional house prices reg studies 29 357 366 this paper uses the kalman filter time varying parameter estimation technique to test for convergence between uk regional house prices this issue is significant given the historical disparities in regional house price inflation rates and the unprecedented downturn in both uk and most regional house prices in the late 1980s and early 1990s the evidence suggests that there are clear regional differences in the pattern of uk house price movements in particular house prices in the north and scotland show evidence of greater divergence from prices in the rest of the south east region than do the southern and midlands regions drake l 1995 une analyse pour determiner la convergence des prix du marche immobilier regionaux au royaume uni reg studies 29 357 366 cet article se sert de la technique dite kalman filter afin de determiner la convergence des prix du marche immobilier regionaux au royaume uni c

unraveling the veil of fuzziness a thick description of sustainability economics this article provides a thick description geertz 1973 of sustainability economics baumgartner and quaas 2010a b have proposed as an alternative to ecological economics the new field of sustainability economics which has triggered various replies the purpose here is to order and to review these contributions building upon a literature review of sustainability economics the paper argues that the concept currently has more of a fuzzy and declamatory character the rhetoric mccloskey 1998 of sustainability economics contains general issues of sustainability economics externalities and the capability approach the article argues that it is currently not clear how the solutions for science and policy proposed by sustainability economics differ from those of ecological economics efforts should be directed towards further development of the theory and the operationalization of sustainability principles the systemic view of co evolutionary development social learning and sustainability economics normative underpinning merits more consideration in the debate about sustainability economics

policy uncertainty and the demand for money in the united kingdom limited studies that have assessed the impact of economic uncertainty on the demand for money have concentrated on using a volatility measure of money supply and output certainly other factors such as regulation taxes budget deficits national debt etc can contribute to an uncertain environment this new measure of uncertainty which is called policy uncertainty is now constructed for several countries and published we investigate the impact of this new measure on the demand for money in the uk and find that it has a negative and significant short run effect but not any log run effects