This paper examines whether stock prices for a sample of 22 OECD countries can be best represented as mean reversion or random walk processes. A sequential trend break test proposed by Zivot and Andrews is implemented, which has the advantage that it can take account of a structural break in the...

This article examines the long-run and short-run relationship between China's real exchange rate, foreign exchange reserves and the real interest rate differential between China and the United States using monthly data from 1980 to 2002. Extensive testing for unit roots allowing for up to two...

This paper tests Wagner's law of increasing state activity using panels of Chinese provinces. The paper's main methodological contribution is in that we employ for the first time in the literature on Wagner's law a panel unit root, panel cointegration and Granger causality testing approach....

This article utilizes firm level audited data from Shanghai in 2002 and 2003 to examine the extent to which employers shift the burden of compliance with social security obligations back to employees in the form of lower wages. Results from a fixed effects panel model using data on a subset of...

This letter extends research reported in Narayan and Smyth (2005) by employing multiple trend break unit root tests to examine the random walk hypothesis for 15 European stock market indices. The results provide strong support for the view that stock prices are characterized by a random walk.

This paper empirically estimates a murder supply equation for the United States from 1965 to 2001 within a cointegration and error correction framework. Our findings suggest that any support for the deterrence hypothesis is sensitive to the inclusion of variables for the effects of guns and...

This study empirically examines the sustainability of external imbalances in 22 least developed countries as classified by the World Bank. The study uses the real trade balance series, which captures more precisely the behavior of the external balance. It examines the stationarity of the real...

This article examines judicial citations to analyze the determinants of judicial prestige in the Federal Court of Australia. First we construct two alternative measures of judicial prestige for all current and retired judges of the Federal Court. Second, we regress these measures of judicial...