Recent papers by Chen et al (2009, 2010) suggest that exchange rates have predictive power over future commodity price movements. We use a Vector Error-Correction model to test this hypothesis using Australian data. We find substantial evidence of in-sample forecasting power but are unable to...

We measure how different the shapes of Engel curves are across 59 commodity groups. The same analysis is carried out for their derivatives and variances. While Engel curves possess a relatively homogeneous shape, significantly more heterogeneity is present in derivatives and when particular...