The Cyclical and Trend Behavour of Australian Investment and Savings
AbstractA spectral analysis of the Australian time series for the investment and savings ratios on quarterly data over the period from September 1959 to December 2005 reveals that the major cyclical components of the savings and investment ratios cohere strongly. This suggests there is a medium to long term relationship between investment and savings. Further, the investment and saving ratios cohere strongly with the business cycle suggesting a procyclical pattern of investment and saving behaviour on Australian data. A subsequent long memory analysis reveals that the saving and investment ratios, the investment ratio and real GDP and the savings ratio and real GDP are fractionally cointegrated. The policy implications are explained.
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Bibliographic InfoArticle provided by OECD Publishing,CIRET in its journal Journal of Business Cycle Measurement and Analysis.
Volume (Year): 2007 (2007)
Issue (Month): 3 ()
Spectral analysis; Cycles; Trends; Fractional Cointegration; Long memory; Investment; Savings;
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- Saten Kumar & Scott Fargher & Don J. Webber, 2009.
"Testing the validity of the Feldstein-Horioka puzzle for Australia,"
0911, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
- Saten Kumar & Don J. Webber & Scott Fargher, 2012. "Testing the validity of the Feldstein--Horioka puzzle for Australia," Applied Economics, Taylor & Francis Journals, vol. 44(5), pages 599-605, February.
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