The methodology for the testing of bubbles in asset prices has recently been applied to testing the sustainability of government debt accumulation. In particular, Hamilton and Flavin (1986) and MacDonald and Speight (1987) use the methodology developed by Flood and Garber (1980) in an attempt to...

This paper investigates the efficiency of Australian options markets using a version of the Black-Scholes model. Under the joint null hypothesis that the pricing model is valid, and that forecasts are efficient, the implied volatilities calculated from observed option prices should be efficient...

This paper identifies two major sets of issues which have been raised in the study of financial futures markets outside Australia. The first concerns the hypothesis of market efficiency, which asserts that futures prices fully reflect available information about subsequent prices in the physical...