DEMAND FOR MONEY AND EXPENDITURE COMPONENTS IN SOUTH AFRICA: ASSESSMENT FROM UNRESTRICTED ERROR-CORRECTION MODELS

The main aim of this study is to examine empirically the long‐run relationship of money demand and its determinants in South Africa. In contrast with existing studies on the subject, the present study considers various components of real income as determinants. The disaggregated components are final consumption expenditure, expenditure on investment goods and exports. The other determinants are domestic interest rate, yield on government bonds and the exchange rate. The results confirm that the different components of real income have different impacts on the demand for money in South Africa. The presence of long‐run equilibrium relationships between the demand for real M1, M2 and M3 and their determinants is confirmed based on the results of bounds testing.     

Structural stability regardless of membership turnover? The added value of blockmodelling in the analysis of network evolution

The extent to which the emergent structure of an organization remains the same, regardless of the turnover of the members, is one of the most interesting questions raised by the analyses of its evolution. This paper uses longitudinal network analysis to provide an answer to this question. Its shows the usefulness of combining both dynamics and comparative statics (here, blockmodelling) in the study of this evolution. An empirical study examines the evolution of the structure of the advice network among judges of the Commercial Court of Paris. The combination of dynamics and comparative statics answers the initial question: Radical structuralism turns out to be wrong. An answer depends on the dimensions of the structure on which observers focus. The pecking order in the advice network remains relatively stable, regardless of members’ turnover. However, social differentiation measured in terms of role relationships and division of work shows that the relational structure does not remain the same regardless of members’ turnover. Specifically, relational processes within the organization, such as collective learning, impose varying constraints on different kinds of members over time and the overall relational structure reflects these members’ changing reactions and responses to these constraints. Since the former vary, so do the latter, and so does the resulting emergent overall structure.