Unsatisfied with little evidence provided on various hypotheses concerning the revenue-expenditure relation in China, this paper is an empirical endeavour to fill the gap through a battery of econometric tests for causality based on VEC and VAR models. A more comprehensive testing strategy for...

Investment competition between local governments is a well-reported phenomenon accompanying the stage of economic take-off in China. Thus it is of important practical significance to investigate how the central bank can effectively realise its objectives in the context of such a competition when...

Following recent studies on evolving stock markets in some of the European transition economies, we revisit the weak-form efficiency of China's stock markets by examining its changing behavior over the entire history of the Shanghai and Shenzhen Stock Exchanges for which data are available. The...

This short paper studies the efficient market hypothesis using four New Zealand Stock Exchange indexes (NZSE 10, NZSE 30, NZSE 40, and NZSE SC) within the random walk, cointegration and Granger causality test framework. The test results have shown that the small-firm stock market is semi-strong...

This paper employs a quasi-Bayesian model selection approach to detect the number and dates of structural changes in China's GDP and labour productivity data. It is shown that the predictive likelihood information criterion is valid only among models with well-behaved residuals. However, Some...

While verging on becoming an economic superpower, China's economic growth has nevertheless slowed down in recent years and somewhat persistently. This article examines the long-run factors that underlie the strategic changes. It first reviews China's outward-oriented development strategy as...

This paper employs newly developed techniques of nonlinear cointegration analysis to study international stock market integration. The stock price indexes of Australia, Japan, New Zealand, the United Kingdom and the United States are used in both linear and nonlinear cointegration tests on...

In assessing tail-related risks in Asian equity markets, we blend the GPD model with the GARCH one. This approach enables us to reveal that innovations after volatility filtering may still remain heavy-tailed or involve tail-related risk that cannot be captured by the GARCH-type model alone. Our...

This paper employs a time-varying framework to examine the informational efficiency of China's A-share and B-share markets, with a focus placed on the following issues: changing weak-form efficiency, the leverage effect, and information transmission in return volatility. We find that the A-share...

By using dynamic panel data estimation techniques for twenty-one OECD countries, this paper investigates the effects of government expenditures and four different types of tax policy innovations on the human capital accumulation process. Our results show that only income taxes have a significant...