Testing for PPP in Australia: evidence from unit root tests against nonlinear trend stationarity alternatives

This paper tests for the empirical fulfilment of PPP in Australia (1977-2004). Previous research focuses on the presence of structural breaks and fails to find any support for PPP (Darne and Hoarau, 2008, Henry and Olekalns, 2002). In contrast, we find that the real exchange rate is stationary once we account for a more general specification of the nonlinear deterministic components based on a Chebishev polynomials approximation

Lie group stability of finite difference schemes

Differential equations arising in fluid mechanics are usually derived from the intrinsic properties of mechanical systems, in the form of conservation laws, and bear symmetries, which are not generally preserved by a finite difference approximation, and leading to inaccurate numerical results. This paper proposes a method that enables us to build a scheme that preserves some of those symmetries.Comment: 10 page

Testing for PPP in Australia: Evidence from unit root test against nonlinear trend stationarity alternatives

This paper tests for the empirical fulfilment of PPP in Australia (1977-2004). Previous research focuses on the presence of structural breaks and fails to find any support for PPP (Darne and Hoarau, 2008, Henry and Olekalns, 2002). In contrast, we find that the real exchange rate is stationary once we account for a more general specification of the nonlinear deterministic components based on a Chebishev polynomials approximation.PPP

Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter?

This article aims to reexamine whether Australia’s real exchange rate is mean reverting in the long run by using quarterly trade weighted indices of real exchange rate data for the period of June 1970 to September 2009. We use the state of the art of several more recent econometric tests for this purpose. The empirical result shows that the non-stationarity of Australia’s real exchange rate cannot be rejected. Thus, our results support the PPP hypothesis in Australia. Our results are contradictory to those of Cuestas and Regis (2008), but conform to those of Darné and Hoarau (2007 & 2008).Purchasing power parity; Real exchange rate; Unit roots; Fractional integration

Implications of fisheries during the spawning season for the sustainable management and recovery of depleted fish stocks: a conceptual framework

Fishing during the spawning season may negatively affects the reproductive potential and reproductive dynamics of exploited fish stocks due to a variety of mechanisms such as the disturbance of the natural spawning behaviour, effects on the age, size and sex composition of the spawning population and effects on the population genetics. The effect may differ between species in relation to the spawning strategy and population dynamic characteristics. Based on first principles of reproductive biology, population biology and fishing methods, a theoretical framework is developed on the effects of fishing during the spawning period. This framework is used to structure a review of the available scientific evidence. Implications of the findings on the recovery of depleted fish stocks and the sustainability of exploitation will be discussed and illustrated for a selection of North Sea fish stocks (flatfish, roundfish and pelagic)

Economic implications of corporate financial reporting in brazilian and european financial markets

The main objective of this study is to determine how the people involved in the accounting process consider the role of accounting information in an economic environment where capital markets play a major role. The study is also aimed at determining whether International Financial Reporting Standards (IFRS) will help fulfill this role. To this end, we compare the perceptions of financial officers, financial analysts and auditors, using Europe as a proxy for a highly developed capital market environment and Brazil as a proxy for a less developed capital market environmentEconomic implications ; corporate financial reporting ; brazil ; europe ; financial markets

Optimizing the new formulation of the United Nations' human development index: An empirical view from data envelopment analysis.

In this paper, we propose a new way to simulate an optimal Human Development Index [HDI]. Indeed, the formulation of the original HDI established by the United Nations Development Programme [UNDP] relies on a major methodological shortcoming, namely the contestable assumption that all component indices have the same weights. So, we implement a new approach to determine the optimal weights of each sub-indicator in the light of Data Envelopment Analysis [DEA]. Accordingly, we follow the multiplicative optimization approach introduced by Zhou et al. (2010), to assess robustly the relative performance of a set of 169 economies around the world in terms of human development. Finally, the new world ranking is close to and highly correlated with the standard HDI one, giving then some support to the equal weighting method adopted by the UNDP.Human development index, data envelopment analysis, multiplicative optimization approach, optimal weights