A significant amount of real estate research has been directed towards developing empirical models explaining rental growth. This paper develops an error correction mechanism (ECM) model which is built on the general theoretical formulation of the Hendershott et a.l (2002a). Income, as measured by local market services output, is used as a key determinant of office demand. A total office stock variable is also used which is derived from the cumulated level of development completions. The model is estimated empirically for 12 office market locations across Europe using panel data techniques and the full sequence of panel model selection tests. The approach allows the behaviour of different markets to be readily compared and contrasted, and provides inferences about intra-market dependence and the comparative speed of adjustment towards long-run equilibrium. The study also compares the short-term predictive performance of the proposed model to a number of alternatives which has been covered in the literature, including a-theoretical models. The results offer some support for the proposed model for predicting shortterm rental movements.

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During the 1970s and early 1980s Paraguay experienced relatively high rates of economic growth as well as a boom in primary goods production destined for export. The question which this research addresses concerns the relationship between these events and the applicability of the so-called export-led growth (ELG) hypothesis. The hypothesis is investigated via the use of modern time series methods including Granger causality tests, error correction modeling, and vector autoregression. The basic conclusion reached is that the ELG does not have much relevance to the Paraguayan case.Paraguay, economic growth, primary goods exports, export-led growth hypothesis, ELG, modern time series methods,

This paper is a compendium of results-theoretical and computational-from a series of recent papers developing a new American option valuation technique based on linear programming (LP). Some further computational results are included for completeness. A proof of the basic analytical theorem is given, as is the analysis needed to solve the inverse problem of determining local (one-factor) volatility from market data. The ideas behind a fast accurate revised simplex method, whose performance is linear in time and space discretizations, are described and the practicalities of fitting the volatility smile are discussed. Numerical results are presented which show the LP valuation technique to be extremely fast-lattice speed with PDE accuracy. American options valued in the paper range from vanilla, through exotic with constant volatility, to exotic options fitting the volatility smile. Copyright Blackwell Publishers, Inc..

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