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a r t i c l e i n f o JEL classification: C12 C22 C32 F30 F31 Keywords: Fractional Integration Nonlinear modelling Mean reverting process Long-memory process This paper examines the time series behavior of monthly bilateral real exchange rates (RER) on a comprehensive sample of 78 industrialized and developing countries, using the US Dollar, the UK Pound(More)
The views expressed in this paper are those of the authors and do not necessarily reflect those of the School of Economic at UNSW. Abstract Empirical evidence suggests that real exchange rates (RER) behave differently in developed and developing countries. We develop an exogenous 2-sector growth model in which RER determination depends on the country's(More)
This paper examines the relationships between the CAC40 index, the Dow Jones index and the Euro/USD exchange rate using daily data over the period 1999-2008. We find that these variables are I(1) nonstationary series, but they are fractionally cointegrated: equilibrium errors exhibit slow mean reversion, responding slowly to shocks. Therefore, with regard(More)
Empirical evidence on the growth benefits of capital inflows is mixed. The growth benefits accruing from capital inflows also appear to be larger for high savings countries. We explain this phenomenon using an OLG model of endogenous growth in open economies with borrowing constraints that can generate both positive and negative growth effects of capital(More)
We study the compatibility of the optimal population size concepts produced by different social welfare functions and egalitarism meant as " equal consumption for all individuals of all generations ". Social welfare functions are parameterized by an altruism parameter generating the Benthamite and Millian criteria as polar cases. The economy considered is(More)
Acknowledgements It has been a long journey. Sometimes it was tough but it was joyful. I believe that it would not have been possible to complete my thesis without the great help and support of my supervisor professor Cristina Terra. Her excellent guidance makes the journey valuable. I would like to thank my juries Mr. Michael Brei, Ms. Karine Gente and Mr.(More)
Should a country invest more in human or physical capital? The present paper addresses this issue, considering the impact of different factor intensities between sectors on both optimal human and physical capital accumulation. Using a two-sector overlapping generations setting with endogenous growth driven by human capital accumulation, we prove that(More)
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