Using theoretical foundations, VAR restrictions are imposed allowing demand and supply sources of output movement to be distinguished and the effects of their shocks on stock prices to be analysed. Stock prices are sensitive to all shocks although the influence from the real economy to the stock...

Using 20 years of Australian quarterly data, this paper decomposes Australian share prices into their fundamental and speculative components. To do this we derive the fundamental share-price-output ratio and, hence, the fundamental share price from a resticted vector-autoregressive model...

This paper is concerned primarily with the economic and welfare consequences of federal redistributive grants. We use a model which has two regions, each with households, firms and regional governments as well as a federal government. The households, firms and regional governments are all...

This paper analyses a simple inter-governmental transfer within a two-regional federal model with optimising regional governments and an exogenous federal government. Regions are linked by inter-regional migration of labour and households migrate from one region to the other in response to...

This paper evaluates the role of technical change as a mediating channel through which the effects of institutions trickle down to affect macroeconomic volatility, crises and growth. Using different samples, estimation procedures and indicators of institutions and technical change, we find a...

Using 54 yeras of US quarterly data and a VAR model underpinned by a theory of the relationship between stock prices and output, this paper considers the deviations of US stock prices from their fundamental value. To do this we derive the fundamental price-output ratio and the fundamental stock...

This paper explores weak and semi-stong efficiency for both A and B shares traded on the Shanghai and Shenzhen stock exchanges using daily data for seven indexes for the period 1992-2001. We find evidence of departures from weak efficiency in the form of predictability or returns on the basis of...

This paper develops a modelling framework within which questions of fiscal federalism can be handled. Regional computable general equilibrium (CGE) models form one good approach for examining such questions. However, conventional regional CGE models contain little, if any, theory relating to...

This paper investigates the interrelationships between prices on the mainland Chinese share market and those in the neighbouring markets of Hong Kong and Taiwan. While there is a growing literature on interrelationships between share market including the emerging markets in Asia, very little is...