The paper attempts to examine the validity of the Purchasing Power Parity (PPP) hypothesis for Papua New Guinea (PNG) during the floating exchange rate regime. Exchange rates for the Australian dollar, Japanese yen, the UK pound and the US dollar in terms of kina are used in the empirical...

Based on the DF structure models for option pricing (Dai and Qin, 2005), this paper further discusses the DF structure models for three cases, i.e., when the underlying stock is dividend-paid, or when it is capital-split and when it is both dividend-paid as well as capital-split. These three...

This paper attempts to assess the hedge effectiveness of four hedging models in the Brazilian futures exchange rate market, with daily data from January 1999 to September 2004. The models that were analyzed are naive (full hedge) model; conventional OLS model and error correction model with and...

The paper attempts to empirically determine the causal relationship between the stock price and the exchange rate in the Philippines. Having established the stationarity condition of each series using Augmented Dickey-Fuller (ADF), Phillip-Perron (PP) and mean stationary (KPSS) unit root tests,...

All human beings desire to live long, stay healthy and active. Satisfaction of hunger is not enought to sustain a healthy and active life, what we need is a balanced diet, as nutritional deficiencies may cause serious health hazards. In this context, the objectives of this paper are (a) to...

This paper examines relationships among different currencies in two different regimes, i.e., floating and pegging (fixed) regimes. Daily rates for five foreign exchange rates (Great Britain Pound, Singapore Dollar, Japanese Yen, Chinese yuan, Germany Deutsche mark) for the period from 1990 to...

Institutions are the rules of the game in a society by which the members of a society work together, shape the economic behavior of agents and help to explain the economic performance of the country. This paper attempts to empirically test the link between institutional quality and economic...

The Phillips curve trade-off between output and inflation has for long been a debatable issue in the study of macroeconomics. Both new classical and new Keynesian approaches give contending views in explaining the determinants of the trade-off. The main aim of this study is to investigate...

Premier Wen Jibao, when asked about how the Chinese government would deal with the overheating economy as indicated by the expanding money supply, bank credit and fixed investment, in a Reuters interview in April 2004, said: We need to take effective and very forceful measures to resolve those...

This paper focuses on the theoretical differences of four index methods to predict price fluctuations in the picture market: (a) the relation of the arithmetic mean of picture prices of two periods; (b) the relation of the geometric means of picture prices of two periods; (c) the arithmetic mean...