Congratulations on your purchase of the Nokia 3205 mobile phone. Your phone provides many functions which are practical for daily use, such as a radio, hands-free loudspeaker, alarm clock, calculator, calendar, and more. Your phone can also connect to a PC, laptop, or other device using a data cable or the built-in IR port. To personalize your phone, you can set your favorite ring tones, create a go-to-menu, and select a Cut-Out color cover.
The wireless phone described in this guide is approved or use on the AMPS 800, CDMA 800 and 1900, and 1XRTT networks. Contact your service provider for more information about networks.
The introduction of the Euro has been one of the most important events for global financial markets in the last decade. Detken and Hartmann (2000, 2002) and Perée and Steinherr (2001) show that the Euro has become one of the three major currencies in the world after its introduction, taking its place alongside the U.S. dollar and the Japanese yen. An immediate consequence of the adoption of the common currency has been the convergence of Euro-zone interest rates and the integration of fixed-income markets (Adjaouté and Danthine, 2003; Hartmann et al., 2003). Another important dimension of the elimination of exchange rate risk across countries within the Euro area, as a result of the adoption of a single currency, is its effect on the dependence or comovement of equity markets within the Euro area. The impact of the introduction of the Euro on the dependence of equity markets within Europe is an important issue with significant implications for portfolio diversification and thus asset management, risk management and international asset pricing.
To assess this impact of the Euro, this paper provides a comprehensive analysis of the financial market co-movement of 17 European countries during the period 1994-2003 using a new econometric methodology. 1 In particular, we directly assess financial market dependence or co-movement across countries by estimating time-varying copula dependence models for stock market indices following the methodology of Patton (2006a). As shown by Patton and explained in more detail in Section 3, copulas offer significant advantages over other econometric techniques in analyzing the co-movement of financial time-series, consisting in the fact that they can model dependence beyond linear correlation and provide a high degree of flexibility. In particular, marginal distributions and the joint distribution can be considered separately, while traditionally, either the marginals or the joint distribution are arbitrarily specified as normal distributions. Consequently, copulas have recently become increasingly popular in various finance applications, such as modeling default correlations for credit risk management (Li, 2000), modeling portfolio allocations (Hennessy and Lapan, 2002), pricing foreign exchange rate quanto options (Bennett and Kennedy, 2003), pricing multivariate contingent claims (Rosenberg, 2003), and modeling time-varying dependence (Patton, 2006a,b).
Can a country grow faster by saving more? The relationship between saving and growth plays a central role in the neoclassical growth models of Solow (1956) and Cass (1965), Koopmans (1965) and Ramsey (1928). It also features prominently in the AK models starting with Harrod (1939) and Domar (1946), and then more recently by Frankel (1962) and Romer (1986). All these growth models emphasizing capital accumulation as the source of growth, tell us indeed that higher saving rates should foster growth because higher savings imply higher capital investment. But these are closed economy models, and extending them to the case of small open economies with international capital markets would eliminate the effect of local saving on growth.
More recent models emphasizing innovation as the main engine of growth (Romer, 1990; and Aghion and Howitt, 1992), either ignore capital accumulation, in which case there is no role for saving even in a closed economy, or they emphasize the complementarity between capital accumulation and innovation (Howitt and Aghion, 1998), in which case the equilibrium growth rate depends positively upon domestic saving. But even in the latter case the theory does not apply to the case of an open economy with capital mobility.
