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This paper has two purposes. The first is to argue that aggregate investment may be subject to the following paradox. A rise in investment decided by firms to correct overutilization of their production capacity may generate less capacity than demand — and hence cause a paradoxical rise in overutilization. This will in turn lead to even more investment, and so on — the result being the self-sustained rises in output that characterize economic expansions. The second purpose of the paper is to put forward one reason why the above paradox of investment will lose strength as expansions progress, and may eventually disappear leading to their end. That reason may be summarized as follows. As net investment increases along expansions, the effect of investment on production capacity rises relative to its effect on demand — and, as a result, the rise in utilization slows down. Moreover, as net investment eventually grows to a high level, the effect of investment on capacity may become bigger than its effect on demand. If this happens, utilization will stop rising and start falling, and thus the same may happen with investment and output. info:eu-repo/semantics/acceptedVersion

This article examines the tourism economic dynamics under the carbon intensity target policy with macroeconomic uncertainty. Using a novel multi-sector dynamic stochastic general equilibrium model,...

Our inquiry offers an analysis of ‘stagnationist’ unbalanced growth through making use of a Structural Economic Dynamic (SED) approach. What we intend to establish are some of the advantages associ...

The paper focuses on four critical differences between capitalism of the Keynes-Kalecki times and the present-day financial capitalism. The first follows from the wholesale globalisation and libera...

The phenomenon of governance by insurgents characterises many contexts of civil war and influences political, security, social, and economic dynamics in the original conflict zone and beyond. There...

This article seeks to examine Vietnam-Australia bilateral relations from 2000 to 2018. It will focus on political and economic dynamics of this relationship. Canberra and Hanoi established initial ...

Conceptual reflections and empirical evidence on the evolution of regional innovation processes are increasing in recent years. This paper contributes to this debate by focusing on the long-term implications that evolutionary changes in regional innovation patterns – intended as alternative combinations of territorial structural conditions and phases of the innovation process – can have on regional economic dynamics. By applying the regional innovation pattern framework in a dynamic perspective, it shows that structural changes in regional innovation patterns positively influence regional economic performance. From these results, reflections on regional innovation policy in the European Union context are drawn.

The articles in this issue ask what we are missing when we study an economy without taking into account the way in which gender relations impact its functioning, at both micro and macro levels. They open the way for fresh thinking on the interplay between gender relations and capitalist economic dynamics.

Regional resilience has been criticized in the literature for being fuzzy. Based on that criticism one could expect it to suffer from conceptual stretching, that is that authors mean different things when they write about regional resilience. In this paper for the first time, a bibliometric analysis is presented to tackle the issue of fuzziness and stretching concerning regional resilience. With the help of that analysis, we identified three groups of research on regional resilience, urban ecology and policies (red), economic dynamics and regional evolutionary perspectives (green) and crisis management and engineering/modelling (blue). We also identified the key papers cited in these groups. In a second step, our qualitative analysis reveals that the divide between the red and green groups is not large and that the blue group is relatively isolated. Overall, the concept of regional resilience seems to be less stretched than we expected on the basis of the criticism expressed in the literature.

The impact of Indigenous culture on Indigenous entrepreneurs in Australian small to medium-sized enterprises is outlined in this paper. Qualitative interviews with 38 Indigenous entrepreneurs were carried out across urban, regional, rural, and remote locations Australia. This article argues that the relationship between Indigenous culture and Indigenous entrepreneurship is complex and sometimes contradictory. This complexity arises for various reasons including: (1) the great diversity within the Australian Indigenous community; (2) the fact that most Indigenous people have non-Indigenous partners; and (3) the way in which racial discrimination and socio-economic disadvantage has impacted on Indigenous communities and indigenous culture in Australia. Exploring the evolution of Australian Indigenous enterprises and entrepreneurs from the late 1980s to present, this article provides unique insight into the complexity of the social, cultural, and economic dynamics that shape Indigenous entrepreneursh...

By comparing the decisions of various meetings of the General Councils of Edirne and Ankara provinces from 1283 to 1288 (1867–1872 AD), this study analyses social and economic dynamics of both provinces, the state vocabulary for handling local demands, and the boundaries of responsibility for the state and the local actors in provincial administration. Instead of reading the Tanzimat as a top-down imposition, this article defines General Councils as sites of negotiations between state and local actors and instruments for local development. This article challenges the conventional view of provincial councils as weak and unable to implement various policies. It contributes to a new generation of studies that challenges the separation between state and social forces and looks at how both interacted in provincial administration.

The essay blurs boundaries between art and theory and is intended as an experience of profound relationality, explicitly rejecting exclusive adherence to Eurocentric political and economic theories for their failure to have relevance to Indigenous concerns while situated on Indigenous lands. We acknowledge sacred and economic dynamics that inform each of our subjectivities, resisting binaries that are often applied to individuals through imposed categorizations of settler society. Considering perspectives that exist and carry meaning outside the variety of sociopolitical conceptualizations familiar to us, the authors describe and experience the actual treatment of water, finding Indigenous revisions of Marx’s theory of primitive accumulation useful for better understanding how humans can develop a relationship with water and all animate material as living relatives rather than relating to the world as a series of properties or resources in a globally extractive paradigm.

This review essay amalgamates the economic dynamics found in the rise of the computer industry, as detailed in Martin Campbell-Kelly and Daniel D. Garcia-Swartz, From mainframes to smartphones: A history of the international computer industry (Harvard University Press, 2015), and the metamorphosis of data networks in Shane Greenstein, How the Internet became commercial: Innovation, privatization, and the birth of a new network (Princeton University Press, 2015). These developments have altered the fields of industrial organization and public policy, while shaping the economy of the future. Both books offer deep and illuminating histories that inform our understanding of markets, technology, and government regulation.

This article presents an analysis comparing the economies in the Transbaikal region (the Republic of Buryatia and Zabaikalsk krai) with the economy of Mongolia. It reveals the similarities and differences in demographic and economic indicators in the neighboring territories and outlines the paths for development of cross-border cooperation.

At the moment there is no consensus among experts regarding how effective the economic policy of the Republic of Belarus has been in recent years. Assessments of medium- and long-term prospects for its economic development are even less clear. We attempt to express our opinion on these issues. We should first note that the results of Belarus's economic policy will primarily be viewed in comparison with those of the other two largest post-Soviet countries: Russia and Ukraine. This seems to be a natural comparison, considering that in the early 1990s these countries had approximately equal development characteristics and production efficiency parameters.

This is a timely book because it gives meaning to the debate about the implications of Western sanctions for Russia's economy. By focusing on Russia's domestic economic dynamics, the author avoids ...

The paper examines the influence of resource wealth on the nature of economic development of Kazakhstan. Despite active economic dynamics in the 2000s, the effect of resource abundance has a negative impact on the quality characteristics of modern economic growth in the country. Kazakhstan is characterized by significant structural, territorial, social disparities, low international competitiveness of many commercial goods (even some commodities).

Urban redevelopment projects persist predominantly within the Downtown central business district of the Kingston metropolitan area. This narrow spatial focus of redevelopment projects and efforts ignores the implication for development of the wider metropolitan area and the national urban structure. Evidence suggests that the efforts put in urban redevelopment have achieved moderate success in a few areas and have failed, in others, to provide the revitalisation and renewal energy needed t\o manage contemporary socio-demographic, spatial and economic dynamics and ensure urban sustainability. Compressing data and information collected over the last 10 years from various pertinent sources the research also draws upon a large volume of intellectual literature. The myriad of negative consequences of the redevelopment efforts since 1907 to date have all ultimately linked to ineffective urban management, lacking both philosophical and technical base. The experiences are valuable tools in improving the future re...

This paper examines Mathias Binswanger’s (2009) model of a growth imperative and Zsolt Gilanyi’s (this issue) note on that model. The growth imperative in Binswanger’s model is established through a profit-loan linkage such that loans, as well as the economy as a whole, must grow at a suficiently high rate so that firms make positive profits. To come to this conclusion, Binswanger derives a particular steady-state rate of growth in which profits are zero, which he refers to as the zero profit growth rate. In his note, Gilanyi derives his own minimum growth rate based on a constant money supply. Gilanyi then compares the two minimum growth rates—Binswanger’s zero profit growth rate and his monetary growth rate—to determine which one is the binding constraint on the model. Upon comparison, Gilanyi shows that his monetary constraint is always the binding constraint implying that the zero profit growth rate is redundant. This paper shows that after reformulating Binswanger’s model in order to make it...

This article compares the re-scaling of interest groups in Italy after institutional reforms that increased the policy competences and financial resources of regional governments. Regional units have substantially increased their autonomy within the group organisation, becoming exclusively responsible for managing an intensified relationship with regional governments. Provincial units nevertheless continue to control financial resources and membership ties, while the central level determines strategic choices. The study confirms a highly fragmented interest group environment with a huge disparity of resources between actors. Financial resources of the same interest groups in different regions vary enormously, reflecting the divergent economic dynamics between northern and southern Italy. This raises questions of representative legitimacy for groups claiming to advance nationwide interests. Political parties remain important ties of reference for interest groups; yet relations between these actors ...

Many islands and coastal areas worldwide, particularly in warm climates, have experienced a large and sustained population and urban growth driven by mass tourism. This development has created new social spaces that have broken the social and economic dynamics which have traditionally defined these areas. This new reality has led to new socioeconomic praxes that have improved the life of the local communities, but also entailed new conflicts and problems. This article aims to analyze some of the socioeconomic and territorial disconnections and issues that currently characterize coastal areas and islands affected by mass tourism. At the same time, we introduce and develop some useful conceptual tools and practical strategies intended to enhance archaeological heritage and link it together with local communities and tourists to transcend some of these problems. Furthermore, to show the inherent value of our approach, we present a case study from Mallorca (Balearic Islands, Spain), which focuses on t...

Satellite-based observation of anthropogenic night-time light radiance is typically considered as a proxy measure for human spatial behaviour in terms of demographic and economic dynamics owing to quantitative connections between night-time light and socioeconomic activity. Most previous studies have focused on the monotonic response of artificial night-time lighting, primarily derived from the Defense Meteorological Satellite Programs (DMSP) with spatial resolution of 30 arc-seconds to socioeconomic variables at regional to county scales. Using ordinary least squares regression and quantile regression, we investigate the quantitative relationship between a finer resolution night-time light data than DMSP derived from the Visible Infrared Imaging Radiometer Suite (VIIRS) on the Suomi National Polar-orbiting Partnership satellite (Suomi-NPP) with spatial resolution of 15 arc-seconds and several demographic and economic factors across three local scales: county, district and sub-district in Xian City. Our r...

This article ascertains the underlying causes of the persistence of unsustainable settlement patterns and trends in post-apartheid South Africa. Despite positive development planning policy intentions in the post-apartheid South Africa, glaring deprivation and spatial inequality has persisted. The article is grounded in a chronological analysis of demographic, functional and regional economic dynamics at the different epochs of South Africa's history as well as the settlement policy and planning intentions. Its main finding is that the persistence of unsustainable settlement patterns and trends in post-apartheid South Africa is largely a result of misplaced settlement policies and strategies. They give knee-jerk responses to global, regional, national and local dynamics shaping settlement patterns and trends. The recommendation is that development planning initiatives should be informed by the dialectics of settlement facets at local, regional, national and global levels for them to deal decisivel...

Contributing to debate on the contextual underpinnings and varieties of the resource curse, this article points to how political and economic dynamics of resource endowments operate in interrelated but potentially contradictory ways across spatial scales. Resource endowments insert a complex set of incentives and interests into the political arena in ways that both enable and constrain actors at different scales. Using a case study of gas governance in Bolivia, the article illustrates the interrelation of these dynamics across local, national and international scales, and in particular how they circumscribe the space for local participation.

The 1920s and 1930s were years of intensive debate about economic dynamics and stabilisation policies. There was a large variety of explanations of cycles and depressions, and Keynes’ General Theory of Employment, Interest and Money (1936) was pitched against them. In 1937, followed three different attempts to provide synthetic expositions of macroeconomic theory that would deal with the Keynesian challenge: Hicks’ Mr. Keynes and the “Classics”, Haberler's Prosperity and Depression, and Lundberg's Studies in the Theory of Economic Expansion. This paper compares those 1937 syntheses and contrasts them with the “Neoclassical Synthesis” and the current “New Neoclassical Synthesis”.

At the centre of relationships between children and parents is something arguably uniquely personal, intimate and embodied. For example, Rose (2003), discussing mothers' practices around family photographs, comments that ‘it is part of a mother's relationship to her child to engage with that child's absolute corporeal uniqueness. It cannot be denied or avoided’ (16). Yet as the papers in this Special Issue attest, parent–child relationships and practices of ‘parenting’ are also clearly and unavoidably bound up with wider social, cultural, political and economic dynamics in diverse ways. This collection demonstrates a range of such dynamics, but is concerned in particular with how state policy, interventions and services frame and intersect with the everyday spaces and practices of being a parent. The research presented here, therefore, draws on a fairly small but well-established body of research on geographies of parenting (Dyck 1990; Holloway 1998; McDowell et al. 2005). Much of this work has been informed in particular by feminist insights into social reproduction and economies of care to show how geographies of parenting (or rather mothering in the main) are shaped by class and labour market position.

The article examines several characteristics of the current market model of the Russian economy that significantly affect its current and long-term economic dynamics, primarily distinctive features of its interaction with the outside world and the specific nature of the monetary system. Individual principles of contemporary economic forecasting are critically analyzed.

In this article, we establish the existence of optimal solutions for a large class of nonconvex infinite horizon discrete-time optimal control problems. This class contains optimal control problems arising in economic dynamics which describe a model with nonconcave utility functions representing the preferences of the planner.

This paper introduces the dynamical framework which combines product and process innovations. The model contributes to the theoretical literature on innovations in two ways. First, it permits for the simultaneous dynamics of both types of innovations which is rarely considered in the literature. Second, the products being generated by the innovations are heterogeneous in their investment characteristics. This allows for the formation of the dynamic interdependency between both types of innovations. As a result, the steady-state levels of process innovations for each product are different and influence the dynamics of product innovations in turn.

This paper examines the dynamic property of a macroeconomic model developed by Matsuyama [Am. Econ. Rev. 97(2007), pp. 503–516] in detail. It is shown that the model can be transformed into a version of the neuron model analysed by Hata [J. Math. Kyoto Univ. 22(1982), pp. 155–173, Chaos in Neural Network Models (in Japanese), Asakura, Tokyo 1998] and that the system can exhibit either periodic fluctuations or non-periodic (chaotic) fluctuations.

In this paper, we devise a social criterion in the spirit of the critical utility level of Blackorby-Donaldson (1984) to study an optimal population size problem in an endogenously growing economy populated by workers living a fixed amount of time and without capital accumulation. Population growth is endogenous. The problem is analytically solved, yielding closed-form solutions to optimal demographic and economic dynamics. It is shown that provided the economy is not driven to optimal finite time extinction, the optimal solution is egalitarian for appropriate choices of the critical utility levels: all individuals of any cohort are given the same consumption. The results obtained do not require any priori restriction of the values of the elasticity of intertemporal substitution unlike in several related papers.

Eritrean Diasporictourism is a striking example of how Diasporas are not only victims of the nation state, but also play a great role in wider transnational cultural and economic dynamics of change. The present economic and political situation in Eritrea and the stability reached in Milan has diminished the probability that Eritreans in the Diaspora will return to Eritrea to live. Nevertheless, many people in this Diaspora community return to Eritrea for holidays at least every two years. The Eritrean summer returnees invest in Eritrea by becoming its tourists. This paper explores the narratives of Eritreans in Milan around going to Eritrea on holiday and returning from their vacation, and questions the impact of their imaginary of Eritrea as a place for leisure and tourism. The returnee is much more than a simple tourist as she/he also performs a wider Diasporic identity, which acts as a separate but influential collective category.

This article compares the economic management of two architects of Asian economic miracles, namely, Li Kuo-Ting of Taiwan and John Cowperthwaite of Hong Kong. It reveals that two financial ministers showed drastically different management styles. Li Kuo-Ting of Taiwan took on a ‘directive’ approach while John Cowperthwaite of Hong Kong relied on the free market in resource allocation. However, both economies achieved impressive economic growth during the post-war period. This comparison reveals that there are many paths to economic development. Furthermore, common ground in economic management of two governments is worth mentioning. Both Taiwan and Hong Kong demonstrated themselves as a competent government. Both governments were good learners and took on a pragmatic approach in economic management. Finally, their economic policies, be ‘directive’ or ‘facilitative’, showed respect to private businesses. In both economies, governments relied on private enterprises to promote economic dynamics. Hence, this ...

Geografisk Tidsskrift Danish Journal of Geography 111(1):27–41, 2011 In the knowledge based economy, knowledge production has become increasingly important for the competitiveness of firms, cities and regions and as an explanatory factor of spatial economic dynamics. In an immense amount of literature in economic geography, sociology and economics it has been argued that knowledge production often takes place in inter-organisational collaborations, and that trust is an important prerequisite for such collaboration to succeed. The concept of trust, however, remains often blurred and vaguely defined in much of the literature: it often only appears as an asset, an instrument or an input in economic relations. The paper broaden the understanding of trust in local knowledge production by suggesting an approach to trust as an inter-persona/feeling to be analysed on three different but interrelated scales depending on the socio-spatial contexts of the actors. The approach avoids a reification of inter-o...

This paper emphasizes the relationship between financial fragility and economic dynamics. It uses the Minskian microeconomic categories based on the "triad: hedge, speculative, and Ponzi" finance a...

Japan has the largest proportion of elderly people in the world. Despite the widely held assumption that beyond a certain age, the economic dynamics in most people's lives decrease, elderly Japanese tend to remain economically active. In this work I investigate the relationship between demographic and economic changes with respect to entrepreneurship in Japan. Surprisingly, according to statistics, older Japanese are the ones most responsible for entrepreneurship. Considering entrepreneurship as an individual developmental process, three components are involved: „competency (Konnen),” „motivation (Wollen),” and „property or action rights (Durfen).ō In such a new life-situation as beginning an entrepreneurship, one must develop „from oneself.” Becoming an entrepreneur in Japan seems not to depend on the age of the individual per se but rather on the changing opportunity costs between being an employee and being an entrepreneur. In Japan, becoming an entrepreneur is a realistic option for retirees. ...

Educational privatization is rapidly expanding in many urban school districts, altering the social, political, and economic dynamics of educational policy and leadership. Yet many adherents cast privatization primarily as a fiscal or economic alternative to traditional public school management, ignoring these broader alterations. Drawing from a review of the educational privatization literature, as well as an analysis of current privatization reforms, this article offers an original typology of educational privatization and applies the typology to the reforms underway in New York City. It concludes with a discussion of the implications of this typology and privatization reforms for educational leadership practice and policy.

Contrary to the prevailing literature, the study of economic dynamics began at the end of the nineteenth century, at least four decades before Hayek's and Samuelson's essays on dynamic equilibrium, as Pareto's dynamic insights prove. Throughout this early phase of the discipline, economists interested in dynamic studies put forward a wide spectrum of suggestions. This paper investigates the lines of research that sprang from the Italian debate either according to or in opposition to the Paretian mechanistic legacy, aiming to show that a growing awareness of subjective variables’ role weakened the mechanistic faith of the strictly Paretian followers, pushing them toward probabilistic analysis, anchoring dynamics to uncertainty and disequilibrium.

This paper deals with Harrod's fiscal policies to raise the warranted growth rate toward the natural growth rate. Harrod shows that an increase in the budget deficit/GDP ratio raises the short-run growth rate while lowering the warranted growth rate. In order to raise the warranted growth rate Harrod recommends higher tax rates and an increase in public investment. However, given Harrod's own framework these are not unproblematic proposals. This paper resolves some ambiguities in Harrod's analysis and shows how taxation policy, either singly or in combination with a public investment strategy, can raise the warranted growth rate. Following Keynes and others it suggests the relevance of capital budgeting and shows how the warranted growth can be raised via appropriate capital budgeting policies.

This special issue considers how contemporary forms of displacement in southern Africa may be approached and analysed in terms of multiple ‘political economies of displacement’. Drawing insight from classic concepts of political economy, but without adhering to the more rigid aspects of these frameworks, the five studies that comprise this collection explore how certain values related to identity, violence, movement and belonging may be generated, circulated and exchanged under conditions of violence and in the aftermath of upheaval. By tracing how the complex social and material experience of displacement extends inevitably beyond the universalistic assumptions of humanitarian labels, the collection emphasises the importance of local and regional political and economic dynamics, histories and geographies. This Introduction to the special issue highlights some of the more critical themes, some of which are developed more fully in the articles. These include the issue of scale and the challenge in...

Intermittent behaviour of economic dynamics is studied by a nonlinear model of business cycles. Numerical simulations show that after an economic system evolves from order to chaos, the system keeps its memory before the transition and its time series alternates episodically between periods of low-level (quiescent) and high-level (bursting) activities. This model of economic intermittency exhibits power-law spectrum similar to the nonlinear time series observed in financial markets.

This paper examines whether the Australian equity market is integrated with the equity markets of the G7 economies by applying both the Johansen (Statistical analysis of conintegrating vectors, Journal of Economic Dynamics and Control, 12, 231-54, 1988) and Gregory and Hansen (Residual-based tests for cointegration in models with regime shifts, Journal of Econometrics, 70, 99-126, 1996) approaches to cointegration. Some evidence of a pairwise long-run relationship between the Australian stock market and the stock markets of Canada, Italy, Japan and the United Kingdom is found, but the Australian equity market is not pairwise cointegrated with the equity markets of France, Germany or the USA.

This paper argues that the alleged process of globalisation should be recast as a process of ‘glocalisation’. ‘Glocalisation’ refers to the twin process whereby, firstly, institutional/regulatory arrangements shift from the national scale both upwards to supra‐national or global scales and downwards to the scale of the individual body or to local, urban or regional configurations and, secondly, economic activities and inter‐firm networks are becoming simultaneously more localised/regionalised and transnational. In particular, attention will be paid to the political and economic dynamics of this geographical rescaling and its implications. The scales of economic networks and institutional arrangements are recast in ways that alter social power geometries in important ways. This contribution, therefore, argues, first, that an important discursive shift took place over the last decade or so which is an integral part of an intensifying ideological, political, socioeconomic and cultural struggle over the organ...

The effective incorporation of Information and Communication Technologies (ICTs) in business is not something that takes place homogeneously or always with the same speed, particularly in the case of small and medium-sized firms (SMEs). Obviously, the adaptation process of these technologies by the firms affects, and at the same time is conditioned by, the economic dynamics of the regions. The European Union and the national and regional governments have designed programmes and policies oriented towards strengthening the effective development and application of the ICT in small and medium-sized firms. This paper deals with these subjects taking the Spanish case as a point of reference. First, significant data are presented to show the situation in different regions. Second, a more detailed analysis is made of the promotion policies applied in three regions taken as a case study. From this, certain conclusions are drawn and some critical comments are made.

The present study empirically examined five different versions of Wagner's law by employing annual time-series data on six countries over the period 1951–1996. Three countries are part of the emerging industrialized countries of Asia (South Korea, Taiwan, Thailand) and three are industrialized countries (Japan, USA, and the United Kingdom). The analysis is an advance over previous work in two ways: first, the stationarity propertities of the data and the order of integration of the data are empirically investigated using the Augmented Dickey-Fuller (ADF) and the Kwiatkowski et al. (Journal of Econometrics, 1, 1992) (KPSS), tests and second, the hypothesis of a long-run relationship between income and government spending is tested using bivariate cointegrated systems and employing the methodology of cointegration analysis as suggested by Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990). The results indicate that ...

The economic development position in northeast India is characterised by trends prevailing in the country as a whole, as well as some features which are unique to this region. To a large extent, colonial interests dictated the development of the economy of the northeast. Economic development of the region followed a specific pattern. Economic activities got concentrated in select pockets. Together with the perpetuation of traditional practices, select and focussed development impeded the efficacy of modernisation in the region. Despite efforts at policy formulation to cater to the developmental needs of the northeastern states, nothing significant has yet come out during the last several years. It is as such unwise to approach the problem in the northeast as merely a law and order problem. Neither can it be handled as a purely political one. The roots lie deep in the fundamental economic dynamics of the insurgency movements. Any solution to the crisis in the northeast has to begin with an effort ...

The aim of this work is to analyse some possibilities offered by computer algebra systems as a tool for studying economic dynamics. Not only do they enable the solving of problems of considerable difficulty with undergraduate levels of mathematical knowledge but they also allow the approach to the problem itself to be transformed. In this context, the paper illustrates the strategies for studying the Shinkai two-sector model using Maple V®.

This paper investigates the price linkages between the equity market of Australia and that of the US, UK, Japan, Hong Kong, Singapore, Taiwan, and Korea using weekly MSCI stock market data covering the period 1974–1995. Cointegration test using the Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990) procedure and Granger-causality tests based on error-correction models and standard vector autoregression models are conducted. No cointegration was found between Australia and the other markets. However, the Granger-causality and forecast variance decomposition analyses reveal that Australia is significantly linked with the US and the UK. The impulse response analyses further show that Australia responds to shocks from the US and the UK immediately during the first week and this response is completed with a period of four weeks.

In this work we study the asymptotic behavior of optimal trajectories for a class of differential inclusions of the form [xacute](t)$isinv;b(x(t)) - x(t) arising in economic dynamics where b belongs to a space of set-valued mappings. We establish the existence of an open everywhere dense subset E of the space of set-valued mappings such that each mapping from E has the turnpike property