Demographic transition and the real exchange rate in Australia: An empirical investigation

This article utilizes the empirical findings that age structure of the population affects saving, investment and capital flow and hypothesizes that age structure influences the real exchange rate. Based on this link, an empirical model is specified for Australia and estimated with annual data for the period 1970–2011. An autoregressive distributed lag model of cointegration indicates that Australia's real exchange rate is cointegrated with its productivity differential and the relative share of young dependents (0–14 years) in the population. Long-run estimates show that young cohort has an appreciating influence on the real exchange rate. Also, the short-run adjustment is substantial, with more than 65% of the disequilibrium corrected in a year

Effective interaction between helical bio-molecules

The effective interaction between two parallel strands of helical bio-molecules, such as deoxyribose nucleic acids (DNA), is calculated using computer simulations of the "primitive" model of electrolytes. In particular we study a simple model for B-DNA incorporating explicitly its charge pattern as a double-helix structure. The effective force and the effective torque exerted onto the molecules depend on the central distance and on the relative orientation. The contributions of nonlinear screening by monovalent counterions to these forces and torques are analyzed and calculated for different salt concentrations. As a result, we find that the sign of the force depends sensitively on the relative orientation. For intermolecular distances smaller than $6\AA$ it can be both attractive and repulsive. Furthermore we report a nonmonotonic behaviour of the effective force for increasing salt concentration. Both features cannot be described within linear screening theories. For large distances, on the other hand, the results agree with linear screening theories provided the charge of the bio-molecules is suitably renormalized.Comment: 18 pages, 18 figures included in text, 100 bibliog

Technische Rundschau : TR ; das Schweizer Industrie-Magazin

This paper examines mean reversion in the real exchange rate (RER) index of Australia in the presence of structural breaks from 1984 quarter 1 till 2011 quarter 1. Testing for mean reversion in RER is one way of testing the purchasing power parity (PPP) theory of international trade and finance. Mean reversion is examined by using a minimum Lagrange Multiplier unit-root test that allows for breaks in level and trend. We were able to reject the unit-root null hypothesis and find evidence of mean reversion and hence purchasing power parity (PPP). Our finding reverses the results of past studies that failed to prove convergence to PPP in the long-run. The corresponding structural break dates are 1988 quarter 2 and 2002 quarter 4 respectively and these breaks are statistically significant. The break dates mostly correspond to the period of RER instability (1986-1989) and the recovery of the Australian dollar driven by the resources boom (2001-2002)