This paper examines the dynamic relationship that exists between the US real estate and S&P 500 stock markets between the years of 1972 to 1998. This is achieved by conducting both linear and nonlinear causality tests. The results from these tests provide a number of interesting observations which primarily show linear relationships to be spuriously affected by structural shifts which are inher...

In this paper, using a power series methodology we describe a design procedure applicable to analytic nonlinear plants. Our technique is a generalization of the linear H theory. In contrast to previous work on this topic ([3], [14], [15]), we now are able to explicitly incorporate a causality constraint into the theory. In fact, we show that it is possible to reduce a causal optimal design prob...