We examine whether models of inflation forecast targeting are consistent with the observed behaviour of the central banks of Australia, Canada, and the United States. The target criteria from these models restrict the conditionally expected paths of variables targeted by the central bank, in...

We examine whether asset pricing theory can explain residential property prices. Using quarterly data for Local Government Areas in Sydney from 1991 to 2006, we find little evidence that variations in price : rent ratios anticipate future real rent growth. Instead changes in price : rent...

This paper documents the post-war business cycle facts for Australia. The Hodrick-Prescott filter is used to remove the trend component from quarterly macroeconomic series. The business cycle facts we report are the volatilities of the cyclical (detrended) series and their cross correlations...

The role of public services in private production is quantified for the Australian economy over the period period 1966/67-1989/90. Public capital is shown to have a significant and positive impact on private production and private total factor productivity. The extent to which these results can...

In this paper we estimate a monthly series for Gross Domestic Product at market prices for Canada and a price deflator for the period 1962 to 1985. These estimates are consistent with the quarterly estimates which form the basis of the new national income measures of Statistics Canada. We...

There is a long literature examining the theoretical relationship between the rate of inflation and the size of the capital stock in an economy. This literature has produced varied predictions about the effects of inflation on the capital stock. In this paper we present some time series evidence...

This paper develops an empirical model of the cross-country variation in bilateral output growth correlations for 17 OECD countries. Consideration is given to the role played by explicit mechanisms for transmitting shocks between countries, such as trade in goods and financial assets and the...