No.179

Charles Ka Yui Leung, Peiling Wei, Siu Kei Wong,

Are the markets for factories and offices integrated? Evidence from Hong Kong? , February 2006

Abstract:

Due to the relocation of manufacturing facilities from Hong Kong to Mainland China, it is widely believed that some vacant private factories have been used as offices in Hong Kong. Yet there is no direct and systematic evidence to support this speculation. In fact, according to MacGregor and Schwann (2003), industrial and commercial real estate shares some common features. Our research attempts to investigate empirically the price and volume relationship between industrial and commercial real estate, using both aggregate and disaggregate data from the industrial and commercial property markets in Hong Kong. The study was built on the observation that economic restructuring and geographical distance will affect the substitutability (and thus the correlation) of different types of property, and utilizes commonly used time series techniques for analysis. Policy implications are discussed.

No.178

Theodore Palivos, Chong K. Yip,

Optimal Intervention Policies for a Small Monetary Economy , February 2006

No.177

Ettore Damiano, Hao Li, Wing Suen,

Competing for Talents , February 2006

No.176

Douglas W. Allen, Krishna Pendakur, Wing Suen,

No-Fault Divorce and the Compression of Marriage Ages , February 2006

No.175

Charles Ka Yui Leung,

Equilibrium Correlation of Asset Price and Return , November 2005

Abstract:

Two empirical questions concerning the equity and housing have been (2) What is the optimal weight of housing in the portfolio? The answer to the second question crucially depends on the cross-correlation of assets. This paper complements the literature by building a simple dynamic general equilibrium with fully rational agents, and obtain closed form solutions for the implied auto- and cross-correlations. The length of time horizon, as well as the persistence of economic shock matter. Implications and future research directions are then discussed.

No.174

Charles Ka-Yui Leung, Sam Hak Kan Tang, Nicolaas Groenewold,

Growth volatility and technical progress: a simple rent-seeking model , November 2005

Abstract:

Recent empirical evidence demonstrates that a higher level of technical progress is associated with a lower level of growth volatility and higher expected economic growth. This paper builds a simple growth model which combines the insights of Angeletos and Kollintzas (2000) and Tse (2000, 2001, 2002) with endogenous productivity growth and rent-seeking behavior to account for these stylized facts. Our model also complements the literature that focuses on the heterogeneity of different agents. Future research directions are also discussed.

No.173

Wing Suen,

Mutual Admiration Clubs , September 2005

No.172

Wing Suen,

The Comparative Statics of Differential Rents in Two-Sided Matching Markets , September 2005

No.171

Haiqiang Chen, Terence T. Chong,

Threshold Autoregressive Model with Multiple Threshold Variables , September 2005

No.170

Shuo Yuan, Terence T. Chong,

What Cause(s) the Underpricing of H-Share IPO? , August 2005