Economic policy uncertainty and demand for money in Australia

The demand for money has received a great deal of attention in the empirical literature. This literature, however, has emphasized factors such as interest rate, income, inflation rate and exchange rate as the primary determinants of money demand. Although an emerging strand of literature examines uncertainty as a potential determinant of money demand, findings have been mixed. Using a news-based Economic Policy Uncertainty (EPU) index and Australian quarterly data from 1998 to 2017, we study the impact of policy uncertainty on demand for money. Autoregressive distributed lag (ARDL) results show that the economic policy uncertainty measure has a negative short-run effect on the demand for money, suggesting the wider public hedge against future expected inflation, and positive long-run effect, whereby the broader public hold more cash to stay liquid during times of economic uncertainty. Also, introducing nonlinearity into the money demand equation, we find an asymmetric effect, more in favour of currency appreciations, supporting the expectations effect of further appreciations in exchange rate movements.     

Public Debt,Economic Growth and the Real Interest Rate: A Panel VAR Approach to EU and OECD Countries

ABSTRACT

We investigate the causal relationship between public debt ratios and economic growth rates for 31 EU and OECD countries. We estimate a panel VAR model that incorporates the long-term real interest rate on government bonds as a vehicle to transmit shocks in both the public debt to GDP ratio and the economic growth rate. We find no causal link from public debt to growth, irrespective of the levels of the public debt ratio. Rather, we find a causal relationship from growth to public debt. In high-debt countries, the direct negative impact of growth on public debt is enhanced by an increase in the long-term real interest rate, which in its turn decreases interest-sensitive demand and leads to a further increase in the public debt ratio.     

SUPPLY AREA OPTIMIZATION IN THE WESTERN CANADIAN HOG MARKET*

The study of marketing systems normally proceeds from an analysis of the existing structure. These post-facto studies at best provide an evaluation of the system's efficiency and the areas in which improvements can be made. This study, however, was initiated in order to determine the optimal network of assembly points throughout the prairie provinces for the efficient marketing of hogs. This prior determination of the optimal size and location of assembly yards and the corresponding flows of hogs from the producing regions to the assembly points and then to the plants would then be available for use in designing changes in the existing systems or in implementing a new structure. The model used in this study was a modified transhipment model utilizing various truck transfer costs and per hog cost-volume functions for the operation of the assembly yards. The model is readily amenable to further modifications to allow alternatives to be simulated. The use of this or similar techniques to evaluate various conditions should facilitate better design of structures within the Canadian agricultural industry line étude des systèmes de distribution suit habituellement une analyse de la structure existame. Pour dire le mieux, ces etudes post-facto nous donnent une évaluation de ?efficacité du système et des zones où on peut envisager des améliorations. Cette étude-ci, cependant, a eté initiée avec ?intenlion de déterminer le réseau optime de lieux ?assemblage à travers les provinces de ?Ouest pour la vente efficace de pores. On pourrait alors se servir de cette délimitation antérieure de la grandeur et de la location optimes de dépôts ?assemblage et du volume correspondent de pores provenant des régions producteurs et passant par les points ?assemblage pour arriver aux usines pour faire des changements dans les systèmes qui existent à présent ou pour mettre en oeuvre une structure nouvelle. Le modèle utilisé dans cette étude est un modèle modifyé de transbordement qui se sen de divers prix de transports en camion el des fonctions du prix par volume de pore pour ?opération des dépôts ?assemblage. Ce modèle peut facilement accommoder des modifications addition-nelles pour permetlre la simulation d“alternatives. ?emploi de cette technique ou des techniques semblables pour évaluer divers conditions devrait faciliter une meilleure projection de structures dans I'industrie agricole canadienne.     

The business aviation industry: growth,contraction and consolidation

Business Economics - The most significant portion of revenue within the general aviation industry derives from business aviation. Since the mid-1960s, this industry segment has always been largely...