Spatial linkages among Australian construction markets

The linkages among different construction markets have recently attracted much attention from construction economists. The interactions among regional construction markets have been discussed in a few studies, most of which have been carried out by using input-output methods, and none of them investigated spatial effects on the regional construction markets. This study employed spatial econometric techniques, including spatial autocorrelation and convergence tests, to analyse interactions and linkages among construction price indices in Australian six states and two territories. The empirical results indicate the presence of significant positive spatial correlation among the construction prices in Australian eight construction markets and the degree of dependence decreasing sufficiently quickly as the space between regions increases. The results of convergence test further provide evidence of existence of a ripple effect in construction prices among the Australian regional markets and the changes in construction prices in a state would first positively influence neighbouring states, and then spread out into other non-neighbouring states or territories.

A panel vector error correction approach to forecasting demand in regional construction markets

Reliable forecasting as to the level of aggregate demand for construction is of vital importance to developers, builders and policymakers. Previous construction demand forecasting studies mainly focused on temporal estimating using national aggregate data. The construction market can be better represented by a group of interconnected regions or local markets rather than a national aggregate, and yet regional forecasting techniques have rarely been applied. Furthermore, limited research has applied regional variations in construction markets to construction demand modelling and forecasting. A new comprehensive method is used, a panel vector error correction approach, to forecast regional construction demand using Australia’s state-level data. The links between regional construction demand and general economic indicators are investigated by panel cointegration and causality analysis. The empirical results suggest that both long-run and causal links are found between regional construction demand and construction price, state income, population, unemployment rates and interest rates. The panel vector error correction model can provide reliable and robust forecasting with less than 10% of the mean absolute percentage error for a medium-term trend of regional construction demand and outperforms the conventional forecasting models (panel multiple regression and time series multiple regression model). The key macroeconomic factors of construction demand variations across regions in Australia are also presented. The findings and robust econometric techniques used are valuable to construction economists in examining future construction markets at a regional level.

Panel versus GARCH information in unit root testing with an application to financial markets

In a search for more powerful unit root tests, some researchers have recently proposed accounting for the information contained in the GARCH of the innovations. However, while promising, tests with GARCH are difficult to implement, which has made them quite uncommon in the empirical literature. A computationally attractive alternative is to account not for GARCH but the information contained in a panel of multiple time series. The purpose of the current note is to compare the relative power achievable from these two information sources. © 2014 Elsevier B.V.

A factor analytical approach to the efficient futures market hypothesis

Most empirical evidence suggests that the efficient futures market hypothesis, henceforth referred to as EFMH, stating that spot and futures prices should cointegrate with a unit slope on futures prices, does not hold, a finding at odds with many theoretical models. This article argues that these results can be attributed in part to the low power of univariate tests, and that the use of panel data can generate more powerful tests. The current article can be seen as a step in this direction. In particular, a newly developed factor analytical approach is employed, which is very general and, in addition, free of the otherwise so common incidental parameters bias in the presence of fixed effects. The approach is applied to a large panel covering 17 commodities between March 1991 and August 2012. The evidence suggests that the EFMH cannot be rejected once the panel evidence has been taken into account. © 2014 Wiley Periodicals, Inc.

Housing markets with foreign buyers

There are cities in the world which have experienced substantial numbers of foreign buyers in the local housing markets, thereby pushing up the real estate prices to the levels beyond the affordability of local residents. To suppress foreign influences in the forming of housing bubbles, governments have resorted to short-term measures of stamp duty or raising the duty rate for non-local buyers, increasing down payments and restricting or even forbidding non-local purchases. These new measures may help contain the demand for housing, but short of being the first-best optimal housing policy for an open economy with significant non-local and foreign buyers. We argue that the first-best policy is to tax non-local and foreign buyers and then use the tax revenue generated to subsidize domestic low- and middle-income buyers. The optimal tax rate under this compensated scheme is smaller than the tax rate under the lump-sum transfer of tax revenue to all residents. © 2014 Springer Science+Business Media New York.

Intermediate housing markets and effective policy responses

This report examines both Australian and international evidence around the nature of housing stress for many low–moderate income households, as well as ways to assist these families into sustainable, affordable housing that meets a variety of individual needs. The findings suggest that whilst there are existing initiatives which make a positive difference in their lives, more needs to be done to alleviate their housing stress.Interventions from across Australia, the US, Canada and Europe are described here and recommendations emerge for further action to address the housing needs of low–moderate income households in NSW.

Lifelong learning for farmers - the changing world of agriculture

Farmers must understand the intricacies of export markets, futures trading, share markets and global politics. Farmers are often living and working in isolated locations where the opportunities for professional development are limited. Yet they seem able to acquire knowledge and successfully apply it, with the result that agriculture is a growing and vigorous industry. In this paper I wish to acknowledge the unique learning environment of farmers by exploring their relationship with lifelong learning.

Music, Markets and Consumption

The article reviews the book "Music, Markets and Consumption" by Daragh O'Reilly, Gretchen Larsen, and Krzysztof Kubacki.

Education for productive futures: a white woman learning from Aboriginal voices

High incarceration rates of Aboriginal Western Australians leads to between 1800 and 2000 Aboriginal prisoners at any one time. Despite this little is written or noted in Australian peer reviewed academic literature about education provision to Aboriginal prisoners. "Closing the Gap: learning from and privileging Aboriginal voices to learn what helps and hinders educationin WA prisons" is a PhD project nearing submission. It has been conducted in partnership with the Deaths in Custody Watch Committee as we ll as with the support of a local community legalservice. The findings are relevant beyond a prison context.This paper specifically focuses on how understandings of the concept of productivity can differ. Itconsiders what might or might not be helpful in achieving productive educational and trainingoutcomes in Western Australian prisons for Indigenous individuals, families and communities. Itrelies heavily on the words of the author's teachers; the Aboriginal participants in the project alongside Indigenous authors and academics. The paper concludes by considering implications for developing and evaluating training programs in more flexible ways that respect diversity.

Heritage conservation futures in an age of shifting global power

This article argues that international conservation and heritage governance are now entering new and historically important phases. The economic and political shifts that characterize globalization today are providing a platform for non-Western modes of heritage governance to gain newfound legitimacy on the international stage. With the appropriation of cultural heritage for commercial and political purposes occurring at all levels within the emerging economies of Asia, South America, the Middle East, and Africa, heritage conservation aid now plays an important role in the cultural diplomacy and soft power strategies of numerous countries in these regions. Analyses of the globalization of heritage governance in the mid–late 20th century have focused primarily on intergovernmental bodies, such as UNESCO, at the expense of critically reading the role nation-states continue to play in international conservation and heritage governance policy. Using examples from Asia, this paper addresses this imbalance by re-centering the nation-state in an account that argues the rise of heritage diplomacy, coupled with today’s shifting global order and ongoing reduction in UNESCO’s capacity, hold important implications for heritage conservation over the coming decades.

Prospects and challenges of Free Trade Agreements unlocking business opportunities in Gulf Co-Operation Council (GCC) markets

Prospects and Challenges with Free Trade Agreements presents the results of a study that assesses the effectiveness of free trade agreements (FTAs) in unlocking international business opportunities in member states of the Gulf Cooperation ...