This paper attempts to answer the question of whether the gain and loss in property market speculations and rate of information flow play a significant role in stock market volatility in Hong Kong. To test for our wealth-volume-volatility hypothesis, two different measures of volatility:...

This paper suggests that the process of economic integration can generate positive effects for peripheral economies by increasing their attractiveness as a production base for multinational companies. Such investment is likely in the case of goods for which transportation costs are relatively...

This paper empirically investigates the relationship between public infrastructure and international capital flows. Out of a sample of thirty countries a cross-sectional econometric model is constructed to estimate the effects. Different components of infrastructure variables are tested in...

This paper develops an empirical model of bilateral exchange rate volatility. We conjecture that for developing economies, external financial liabilities have an important effect on desired bilateral exchange rate volatility, above and beyond the standard Optimal Currency Area (OCA) factors. By...

Conventional estimates of the economic contribution of agriculture and the agri-food sector suggest that the overall sector still accounts for around 10% of total employment, GNP and exports, even after the structural changes brought about by the Celtic Tiger economy in the 1990s. These...

This paper examines the impact of the recent outbreak of foot-and-mouth disease on the Irish economy using IMAGE, a CGE model of the Irish economy. The direct impacts on the tourism sector, the agricultural sector and on government finances are identified and their overall consequences for the...

This paper studies the international macroeconomic effects of microeconomic measures, aimed at improving the efficiency of public spending management by increasing the price-elasticity of public consumption. In order to do this, we develop a New Open Economy Macroeconomics (NOEM) model in which...

We employ smooth transition models to test the null hypothesis of a unit root in time series on U.S. and U.K. monthly inflation beginning in 1957. Under the alternative hypothesis the test allows for structural change from level-stationarity to difference stationarity. For both countries the...

This paper presents a model of endogenous growth in the presence of habit formation in consumption. We argue that in addition to the traditional disutility effects of habitual consumption, the past history of consumption represents a past record of transactions as well. As a result, the...

This is a revised and extended version of the authors’ 2003 Trinity Economic Paper. It describes Hamilton’s (2001) approach to nonlinear econometric modelling and some of the methods of nonlinear optimization, as before, but adds significantly to the investigation of Hamilton’s Gauss...