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This study analyses the relationship between remuneration (real wage) and labour productivity in South Africa at the macroeconomic level, using time series and econometric techniques. The results depict that there is a significant evidence of a structural break in 1990. The break appears to have affected the employment level and subsequently fed through into employees' remuneration (real wage) and productivity. A long run cointegrating relationship was found between remuneration and labour productivity for the period 1990 to 2011. In the long run, 1% increase in labour productivity is linked with an approximately 1.98% rise in remuneration. The coefficient of the error correction term in the labour productivity is large, indicating a rapid adjustment of labour productivity to equilibrium. However, remuneration does not Granger cause labour productivity and vice versa. / Thesis (M.Com.(Statistics) North-West University, Mafikeng Campus, 2014

<p>In this thesis I study the German housing market and specifically the level of housing investment. First, a theoretical background to housing market dynamics is presented and then I test whether there is a relationship between housing investments and GDP, the size of the population, Tobin’s Q and construction costs. An Error Correction Model is estimated and the result is that the equilibrium level of housing investment is restored after less then two quarters after a change in one of the explainable variables. The estimation indicates that GDP, the size of the population and construction costs affect the level of construction in the short run. However, in the long run the only significant effect is changes in construction cost.</p>

If there is currency substitution, the central bank will lose independence in monetary policy even if the flexible exchange rate system is adopted. In this paper, we investigate the existence of currency substitution between Taiwan and the United States in an open economy during the period of the managed floating exchange rate system, and examine the role of the factor influencing monetary policy and domestic money demand function derived from a small-country portfolio balance approach. To take account of currency substitution, we use quarterly data over 1981-2005 period on the demand for money and include data on the real exchange rate in addition to real income, domestic nominal interest rate and foreign nominal interest rate. The methodology is based on an application of the Johansen and Juselius¡]1990¡^cointegration technique. Also use error correction model to discuss short-run dynamic adjustment processes of these variables. Application of the Augmented Dickey-Fuller test and Phillips-Perron test indeed reveal that all variables are integrated of order one. The result from the Johansen¡¦s maximum likelihood mehtod reveal that there is only one cointegrating vector among the variables. This implies that there is long-run equilibrium relationship among the variables. There is clear evidence that demand for money is affected not only by changes in domestic variables such as real income, domestic nominal interest rate but also by fluctuations in foreign nominal interest rate and real exchange rate. And the coefficiect of the real exchange rate is negative and statistically significant. That means currency substitution is significant factor in the domestic money demand equation and currency substitution indeed exists in Taiwan. This paper successfully provides a consistent result, currency substitution indeed exists in Taiwan. Therefore, to have an effective monetary policy, the monetary authorities should take into account the international factors.

In this thesis I study the German housing market and specifically the level of housing investment. First, a theoretical background to housing market dynamics is presented and then I test whether there is a relationship between housing investments and GDP, the size of the population, Tobin’s Q and construction costs. An Error Correction Model is estimated and the result is that the equilibrium level of housing investment is restored after less then two quarters after a change in one of the explainable variables. The estimation indicates that GDP, the size of the population and construction costs affect the level of construction in the short run. However, in the long run the only significant effect is changes in construction cost.

Using the error correction model, we link the long-run behavior of the Canada-US real exchange rate to its short-run dynamics. The equilibrium real exchange rate is determined by the energy and non-energy commodity prices over the period 1973Q1-1992Q1. However such a single long-run relationship does not hold when the sample period is extended to 2004Q4. This breakdown can be explained by the break point which we find at 1993Q3. At the break point, the effect of the energy price shocks on Canadas real exchange rate turns from negative to positive while the effect of the non-energy commodity price shocks is constantly positive. We find that after one year 40.03% of the gap between the actual and equilibrium real exchange rate is closed. The Canada-US interest rate differential affects the real exchange rate temporarily. The Canadas real exchange rate depreciates immediately after a decrease in Canadas interest rate and appreciates next quarter but not by as much as it has depreciated.

Using the error correction model, we link the long-run behavior of the Canada-US real exchange rate to its short-run dynamics. The equilibrium real exchange rate is determined by the energy and non-energy commodity prices over the period 1973Q1-1992Q1. However such a single long-run relationship does not hold when the sample period is extended to 2004Q4. This breakdown can be explained by the break point which we find at 1993Q3. At the break point, the effect of the energy price shocks on Canadas real exchange rate turns from negative to positive while the effect of the non-energy commodity price shocks is constantly positive. We find that after one year 40.03% of the gap between the actual and equilibrium real exchange rate is closed. The Canada-US interest rate differential affects the real exchange rate temporarily. The Canadas real exchange rate depreciates immediately after a decrease in Canadas interest rate and appreciates next quarter but not by as much as it has depreciated.

Abstract With the processing of globalization and the large increases in international trade and openness, it is important to capture the business cycle correlation with the intimate countries for government to make better policies and keep the economy steady. This study investigated the changes in relationships between the G7 business cycle after the European integration. Choosing 1993 the Europe Union (EU) commencement as the segment, we separated the sample period into 1965:1-1992:4 and 1993:1-2006:4.We adopted kinds of unit root tests to exam if these variables were stationary and the Johansen co-integration analysis to test whether the stationary long-run equilibrium exist or not. With the consideration of long run information, the Vector Error Correction Model (VECM) was applied to study the relationship between the business cycles of United State, EU and the other G7 countries. By Johansen co-integration analysis, we found that the stationary long-run relationship did exist between their industrial productions¡]IP¡^. In addition, the VECM evidence supported the emergence of two cyclically coherent groups -- the Euro-zone and the English-speaking countries -- after the EU commencement in 1993. In conclusion, with the greater correlation of business cycles, the party in office should take account of the business cycle movement of the closed countries more deliberately in this regionalization era.

Abstract Divident discount model found further expected dividend discounting to some fix period. The dividends are determined from the the core of company and relates retain earning. In Taiwan stock market, divedneds are not paid per season. So, I adept earning per share to proxy variable and employ market value weight to conduct dividends for Taiwan stock idnex. The next step, investgate the relationship between price index and diviednds using the econometric model was created by Kapetanios et al. (2006). Consequencely, the relationship are fitted discribtion by ESTR cointegration rather than linear cointegration.