Journal of Business Cycle Measurement and Analysis

Frequency :
3 times a year
ISSN :
1729-3626 (online)
ISSN :
1729-3618 (print)
DOI :
10.1787/17293626
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The Journal of Business Cycle Measurement and Analysis is jointly published by the OECD and the Centre for International Research on Economic Tendency Surveys (CIRET) to promote the exchange of knowledge and information on theoretical and operational aspects of economic cycle research, involving both measurement and analysis (see www.ciret.org/bcma). Now published as a part of the OECD Journal.

Article
 

The Cyclical and Trend Behavour of Australian Investment and Savings You do not have access to this content

 
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Author(s):
Bruce Felmingham, Arusha Cooray
Publication Date
22 July 2008
Pages
18
Bibliographic information
No.:
18,
Volume:
2007,
Issue:
3
Pages
367–386
DOI
10.1787/jbcma-2007-5km7v18rmf8r

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A spectral analysis of the Australian time series for the investment and savings ratios on quarterly data over the period from September 1959 to December 2005 reveals that the major cyclical components of the savings and investment ratios cohere strongly. This suggests there is a medium to long term relationship between investment and savings. Further, the investment and saving ratios cohere strongly with the business cycle suggesting a procyclical pattern of investment and saving behaviour on Australian data. A subsequent long memory analysis reveals that the saving and investment ratios, the investment ratio and real GDP and the savings ratio and real GDP are fractionally cointegrated. The policy implications are explained.