The Long-Memory of the Forward Premium

dc.contributor.author

Baillie, RT

dc.contributor.author

Bollerslev, T

dc.date.accessioned

2010-03-09T15:34:41Z

dc.date.available

2010-03-09T15:34:41Z

dc.date.issued

1994

dc.description.abstract

The estimation of ARFIMA models by approximate maximum likelihood estimation methods, reveals the forward premia for the currencies of Canada, Germany and the UK vis-à-vis the US dollar, to be well described by a fractionally integrated process. These models imply that all the forward premia are mean reverting, although their autocorrelations are quite persistent. This degree of persistence has led other studies to erroneously conclude that the forward premia contains a unit root.

dc.format.extent

1177041 bytes

dc.format.mimetype

application/pdf

dc.identifier.uri

https://hdl.handle.net/10161/1965

dc.language.iso

en_US

dc.publisher

Elsevier BV

dc.subject

AFIRMA models

dc.subject

Autocorrelation structure

dc.subject

Fractionally integrated processes

dc.title

The Long-Memory of the Forward Premium

dc.type

Journal article

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Bollerslev_the_long_memory.pdf
Size:
1.12 MB
Format:
Adobe Portable Document Format