Dynamic interdependence and volatility transmission of Asian stock markets: evidence from the Asian crisis

This paper examines dynamic interdependence, volatility transmission, and market integration across selected stock markets during the Asian financial crisis periods 1997 and 1998. Using a vector autoregressive–exponential generalized autoregressive conditional heteroskedasticity (VAR-EGARCH) model, it is found that reciprocal volatility transmission existed between Hong Kong and Korea, and unidirectional volatility transmission from Korea to Thailand. This suggests that Hong Kong played a significant role in volatility transmission to the other Asian markets. The data also indicate market integration in that each market reacted to both local news and news originating in the other markets, particularly adverse news.

Interdependence and dynamic linkages between the emerging stock markets of South Asia

The present article examines the dynamic linkages between the stock markets
of Bangladesh, India, Pakistan and Sri Lanka using a temporal Granger causality
approach by binding the relationship among the stock price indices within a
multivariate cointegration framework. We also examine the impulse response
functions. Our main finding is that in the long run, stock prices in Bangladesh,
India and Sri Lanka Granger-cause stock prices in Pakistan. In the short run
there is unidirectional Granger causality running from stock prices in Pakistan
to India, stock prices in Sri Lanka to India and from stock prices in Pakistan to
Sri Lanka. Bangladesh is the most exogenous of the four markets, reflecting its
small size and modest market capitalization.

An interdependence analysis of Australian house prices using variance decomposition

Purpose - The purpose of this paper is to analyse the interdependencies of the house price growth rates in Australian capital cities.
Design/methodology/approach - A vector autoregression model and variance decomposition are introduced to estimate and interpret the interdependences among the growth rates of regional house prices in Australia.
Findings - The results suggest the eight capital cities can be divided into three groups: Sydney and Melbourne; Canberra, Adelaide and Brisbane; and Hobart, Perth and Darwin.
Originality/value - Based on the structural vector autoregression model, this research develops an innovative interdependence analysis approach of regional house prices based on a variance decomposition method.

Beyond interdependence: Economic security and Sino-American-Australian trilateralism

Chinas economic and politico-military development is placing considerable strain on the established framework of the trilateral relationship between itself, the United States, and Australia. Specifically, Chinas rise is generating security concerns that are politicizing economic relations between the three states. A more guarded approach to economic collaboration will transform trilateralism, which up to now has been characterized by the scope allowed for the discrete pursuit of security and economic relations. This will force political authorities to carefully consider their policy priorities and further strain relations between the states, as well as supporting a more cautious approach to China on the part of the United States and Australia.

Small cluster in cyber physical systems: network topology, interdependence and cascading failures

In cyber physical system (CPS), computational resources and physical resources are strongly correlated and mutually dependent. Cascading failures occur between coupled networks, cause the system more fragile than single network. Besides widely used metric giant component, we study small cluster (small component) in interdependent networks after cascading failures occur. We first introduce an overview on how small clusters distribute in various single networks. Then we propose a percolation theory based mathematical method to study how small clusters be affected by the interdependence between two coupled networks. We prove that the upper bounds exist for both the fraction and the number of operating small clusters. Without loss of generality, we apply both synthetic network and real network data in simulation to study small clusters under different interdependence models and network topologies. The extensive simulations highlight our findings: except the giant component, considerable proportion of small clusters exists, with the remaining part fragmenting to very tiny pieces or even massive isolated single vertex; no matter how the two networks are tightly coupled, an upper bound exists for the size of small clusters. We also discover that the interdependent small-world networks generally have the highest fractions of operating small clusters. Three attack strategies are compared: Inter Degree Priority Attack, Intra Degree Priority Attack and Random Attack. We observe that the fraction of functioning small clusters keeps stable and is independent from the attack strategies.

Economic indicator comparisons of international real estate sectors using the OECD input-output database

With its growing share in national economies, the real estate sector has been considered a vital contributor of economic development. Research efforts are needed in order to gain a better comprehension of the national specificities of the real estate sector and to identify its role in economic development. Due to limited comparable data, the economic indicators of real estate sectors are hard to compare between different countries. This paper aims to explore the quantitative interdependence amongst the real estate sector and other industries in developed economies using input-output analysis, and to investigate their significant linkages. Based on the recently published Organisation for Economic Co-operation and Development (OECD) input-output database at constant prices, the analysis focuses on the real estate's escalating role in terms ofshares in gross output, value added and gross national product. With emphasis on the relative role of manufacturing, construction and services inputs, this paper also highlights the strengths of the push and pull of the real estate sector.

Linkage measures of the construction sector using the hypothetical extraction method

The hypothetical extraction method (HEM) is used to extract a sector hypothetically from an economic system and examine the influence of this extraction on other sectors in the economy. Linkage measures based on the HEM become increasingly prominent. However, little construction linkage research applies the HEM. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this research applies the HEM to the construction sector in order to explore the role of this sector in national economies and the quantitative interdependence between the construction sector and the remaining sectors. The output differences before and after the hypothetical extraction reflect the linkages of the construction sector. Empirical results show a declining trend of the total, backward and forward linkages, which confirms the decreasing role of the construction sector with economic maturity over the examined period from a new angle. Analytical results reveal that the unique nature of the construction sector and multifold external factors are the main reasons for the linkage difference between countries. Moreover, hypothesis-testing results consider statistically that the extraction structures employed in this research are appropriate to analyse the linkages of the construction sector.

Truth is God harm minimization through the practice of ecologically sustainable design and buddhism

The emergence of the global ecological crisis is presenting unique opportunities for the coordination of ethical thinking across cultural boundaries. Harm minimization as an ethical imperative operates as the ‘modus operandi’ behind both Ecologically Sustainable Design (ESD) and Buddhist practice. The architectural response to ESD is founded upon the ‘Declaration of Interdependence for a Sustainable Future’ adopted in 1993 by the International Union of Architects, of which the RAIA is a member.

Buddhism is a response to existential concerns universal to humanity. It developed as a set of principles for personal transformation known as the Four Noble Truths elucidated two and a half thousand years ago. Buddhist meditation practise ‘interrupts automatic patterns of conditioned behaviour’ recognised as the major obstacle to be overcome in any programme for change. Unsustainable egocentric behaviour is considered fundamental to our global ecological crisis and calls for radical behavioural change are increasingly being heard at the professional as well as the personal level. Emerging synergies between the Western cognitive sciences and Buddhist study of the mind increasingly validate the Tibetan Buddhist mind development phenomenon. Buddhists argue that their programme for enhancing ethical behaviour through mind development is a step-by step process of observation and analysis built upon empirical observation – a fundamental pre-requisite of any ‘scientific’ enquiry. Collaborative research programmes currently underway are an attempt to re-interpret Buddhist meditation techniques within a framework acceptable to Western scientific understanding. A truly holistic approach to harm minimization requires its consideration.

Career progression, human capital and pay equity in Australian public sector labour markets

This study uses data from the Victorian Public Sector Census 2004 to identify the extent of equity in pay and career progression (promotion). A system of three equations is developed to capture the endogeneity between human capital and promotion and the interdependence between promotion, pay and human capital. The results indicate that there are substantial differences in the average wages earned by public sector employees in different Equal Employment Opportunity (EEO) groups. While some of these differences arise from factors beyond the control of the public sector employers, others arise from bias in the public sector employment system and procedures. The earnings of individual employees in the public sector are determined in a systematic way by the wage structures in the different sub-sectors, the skill base of the employee on recruitment, sub-sector specific promotion rates, acquisition of formal and informal training and the apparent bias within recruitment and promotion systems in dealing with particular groups. The apparent bias of recruitment and promotion systems is complex in makeup and varies within EEO groups as well as between EEO groups. Most of the difference in pay across employees can be explained as an outcome of individual choice and labour market conditions external to the public sector. After adjusting for sectoral wage differences, skill base when recruited, sectoral promotion rate differences, experience in the public sector, whether individuals are employed on a full-time or part-time basis and individual training decisions, the statistical evidence is consistent with the finding that public sector recruitment and promotion systems tends to be biased, on average, against females and those from culturally diverse backgrounds. Achievements in formal education are important for salary progression. This is particularly the case for women. The main drivers of participation in formal education were employer support in both financial and non-financial terms. Promotion rates were important factors in explaining wage differences. Women tended to receive slightly fewer promotions than men, but women received, on average, greater rewards for each promotion.

Tourism, trade and domestic welfare

Tourism has been regarded as a major source of economic growth and a source of foreign exchange. It has also been viewed as an activity that imposes costs on the host country. Such costs include increased pollution, congestion and despoliation of fragile environments, and intra-generational inequity aggravation. One aspect that has been ignored is the general equilibrium effects of tourism on other sectors in the economy. This paper presents a model that captures the interdependence between tourism and the rest of the economy, in particular agriculture and manufacturing. An important result obtained is that the tourist boom may 'immiserize' the residents.

Disentangling the stigma of HIV/AIDS from the stigmas of drugs use, commercial sex and commercial blood donation - a factorial survey of medical students in China

Background
HIV/AIDS related stigma interferes with the provision of appropriate care and support for people living with HIV/AIDS. Currently, programs to address the stigma approach it as if it occurs in isolation, separate from the co-stigmas related to the various modes of disease transmission including injection drug use (IDU) and commercial sex (CS). In order to develop better programs to address HIV/AIDS related stigma, the inter-relationship (or 'layering') between HIV/AIDS stigma and the co-stigmas needs to be better understood. This paper describes an experimental study for disentangling the layering of HIV/AIDS related stigmas.

Methods
The study used a factorial survey design. 352 medical students from Guangzhou were presented with four random vignettes each describing a hypothetical male. The vignettes were identical except for the presence of a disease diagnosis (AIDS, leukaemia, or no disease) and a co-characteristic (IDU, CS, commercial blood donation (CBD), blood transfusion or no co-characteristic). After reading each vignette, participants completed a measure of social distance that assessed the level of stigmatising attitudes.

Results
Bivariate and multivariable analyses revealed statistically significant levels of stigma associated with AIDS, IDU, CS and CBD. The layering of stigma was explored using a recently developed technique. Strong interactions between the stigmas of AIDS and the co-characteristics were also found. AIDS was significantly less stigmatising than IDU or CS. Critically, the stigma of AIDS in combination with either the stigmas of IDU or CS was significantly less than the stigma of IDU alone or CS alone.

Conclusion
The findings pose several surprising challenges to conventional beliefs about HIV/AIDS related stigma and stigma interventions that have focused exclusively on the disease stigma. Contrary to the belief that having a co-stigma would add to the intensity of stigma attached to people with HIV/AIDS, the findings indicate the presence of an illness might have a moderating effect on the stigma of certain co-characteristics like IDU. The strong interdependence between the stigmas of HIV/AIDS and the co-stigmas of IDU and CS suggest that reducing the co-stigmas should be an integral part of HIV/AIDS stigma intervention within this context.

An input-output approach for measuring real estate sector linkages

This research aims to measure and compare the total, backward, forward, internal and sectoral linkages of the real estate sector using the hypothetical extraction method over 30 years and explore the role of this sector in national economies and the quantitative interdependence between the real estate sector and the remaining sectors from a new angle. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. On the other hand, the significant rank correlations in the linkages imply that the importance of real estate remained fairly stable among highly developed economies over the examined period. This may supply a tool to signal the maturity of an entire economy. Furthermore, the findings can aid both governments making relative policies and businesses choosing strategic partners and location strategies.

Modelling linkages between Australian financial futures markets

This paper investigates the dynamic interdependence of the Australian financial futures markets. A multivariate EGARCH model is developed to investigate linkages and stochastic volatility interactions between the 10-year Treasury bond, 90-day bank-accepted bill, and the All Ordinaries share price index futures markets. In this analysis, the empirical results strongly suggest that significant volatility interactions are evident across the 3 markets.