Munich Personal RePEc Archive

Investment and Savings Cycles and Tests for Capital Market Integration

Cooray, Arusha and Felmingham, Bruce (2005): Investment and Savings Cycles and Tests for Capital Market Integration.

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Abstract

A spectral analysis of the Australian time series for the investment and savings ratio on monthly data over the period finds that the investment ratio is subject to a cycle of 6 months duration while the savings ratio series is concentrated on a longer swing of 4 to 6 years. The implications for the Feldstein-Horioka test of capital mobility are explained.

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