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Power
Laws in Exchange Rate Fluctuations
--Takashi
Obara
This
paper analyzes the daily time series of Japanese yen exchange
rate against the US dollar by a model of stochastic differential
equation whose coefficient oscillates cyclically. The expectation
value and the variance of the series are derived by solving
the equation. It is shown that their power spectrums are
expressed by the power function, w-h, where w
is the angular frequency and 1.9 < h < 2.6. It is
also revealed that the power spectrum of the expectation
value has two breaking points and that of the variance has
one breaking point.
©
2008 IUP . All Rights Reserved.
Sustainability
of Balancing Item in 18 Industrial Countries' Balance of
Payments Accounts: An Empirical Study
--Tuck
Cheong Tang
This
study analyzes the sustainability of balancing item (errors
and omissions) of balance of payments accounts of 18 industrial
countries employing unit root tests with level shifts. Initially,
the descriptive summary suggests that the balancing items
of the 18 industrial countries are considered to be `too
big'. The results also suggest that balancing items of balance
of payments accounts of all the 18 industrial countries
are sustainable, except for Iceland, Denmark, Japan, Italy,
France and Spain.
©
2008 IUP . All Rights Reserved.
UK
Technology Policy, The New Economy and Productivity in UK
Manufacturing Industry
--Tony
Buxton and Gerry Kennally
UK
has transited from a situation of technology subsidy in
the 1980s to the profit-driven best and fair technology
environment in the 1990s. But the question is which has
been more significant in terms of long-run influence on
the productivity and competitiveness of the UK manufacturing
industries. This paper attempts to find the structural differences
in UK manufacturing industries during 1970-2005 within the
Cobb-Douglas production function framework with R&D
as one of the factors. The empirical investigations in the
paper confirm the short-run structural impact, and non-significant
long-run effects on productivity and competitiveness of
the technology policies.
©
2008 IUP . All Rights Reserved.
Price
Discrimination and Targeted Advertising: A Welfare Analysis
Rosa
--Branca Esteves and Paulo Guimarães
This
paper presents a monopolistic model of price discrimination
by means of targeted informative advertising. Targeting
is defined as the ability of the firm to direct messages
with different contents to different segments of consumers.
Segmentation is based on different valuations of the firm's
product. The monopolist chooses the level of advertising
for each segment of consumers and discriminates price accordingly.
The paper shows that when targeting is imperfect the monopolist
will over advertise to the highest valuation group of consumers
to the detriment of the lowest valuation group. Only when
targeting is perfect will the seller behave in a socially
desirable manner.
©
2008 IUP . All Rights Reserved.
Linearity
and Stationarity of South Asian Real Exchange Rates
--
Venus Khim-Sen Liew, Hock-Ann Lee, Kian-Ping Lim and Huay-Huay
Lee
In
this paper, the linearity and stationarity of the real exchange
rates of India, Nepal, Pakistan and Sri Lanka are investigated
using formal linearity and the recently developed nonlinear
stationary test procedures. Results obtained show that these
real exchange rates are stationary despite the presence
of nonlinearity. This finding suggests that, it is possible
to monitor and forecast the behavior of these nominal exchange
rates, as well as to determine their equilibrium values
using the corresponding relative prices.
©
2008 IUP . All Rights Reserved.
Price
Effects of Introduction of Derivatives: Evidence from India
--Venkata
Chakrapani Chaturvedula and Bandi Kamaiah
This
study looks at the impact of derivatives listings on returns
of the underlying assets. Employing event study methodology,
the study finds significant and positive abnormal returns
around futures and options listing announcement dates in
the National Stock Exchange (NSE). The results show that
market capitalization of stocks on an average increased
for each stock in the sample from day 0 to day 10. The evidence
obtained from the study support the `market completion hypothesis'
which is valid in the context of the US, the UK and other
developed countries.
©
2008 IUP . All Rights Reserved.
India's
Alternative Trade Strategy from the Perspective of Water
Loss
--Maniklal
Adhikary and Samrat Chowdhury
Water
has increasingly become scarce all over the world . Water
is also being traded in its virtual form across nations.
Trade policies can alter the magnitude and direction of
flow of virtual water between nations. Regulating the virtual
water flow is important as excess export of water would
mean a net loss of our resource which in turn may put pressure
on our already falling water table. Adoption of trade policies
should not only be guided by traditional parameters like
economic growth, but also by consideration of sustainability
of our precious resource, water.
©
2008 IUP . All Rights Reserved.
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