This paper examines the dynamic effects of taxation and investment on the growth path of an economy. A simple neoclassical growth model with different tiers of government is developed. The initial focus is on governments that aim to maximise their citizens’ welfare and economic...

This paper examines whether monetary policy shocks have asymmetric effects on output in Australia. Using methods similar to Cover (1992) together with some other simple threshold models, evidence is found of certain types of asymmetries when comparing monetary contractions to monetary policy...

There has been a great deal of research on trade unions and wage contracts in recent year, but there has been relatively little work on the determinants of contract length. This is unusual given that the duration of union contracts has varied substantially in post-war industrial economies both...

In this paper we contrast a number of univariate models of Canadian GDP. Our preferred models are used to provide a business cycle chronology for Canada, which is compared with some existing, more judgmentally determined chronologies. We find that a simple, "two quarters of negative growth" rule...

This paper examines the dynamic relationship between Australian imports and exports in both the short and long-run using recent cointegration and error-correction techniques. The analysis has direct implications over the specification and estimation of Australian import and export functions and...

In this paper we examine the relationships between business cycles in the G7 countries. We focus on whether recessionary periods in one country are independent of the timing of recessions in other countries in the G7, using three different methods for dating recessions. We find that the evidence...

We further examine the channels through which Foreign Direct Investment (FDI) develops the national productivity of host countries. We investigate whether FDI is an effective channel of technological transfer across borders and whether that technology transfer is bi-directional: from an...

This paper analyses the impact of fiscal decentralisation on the Australian economy at both the aggregate and state levels. Attention is given not only to economic growth but also to a number of important macroeconomic variables which may influence growth. The results suggest that there is no...

Can financial development play a role in abating the natural resource curse? What are the channels via which financial development may negate the potential detrimental effects of natural resources on economic growth? To attempt to answer these questions, the paper employs panel unit root,...