Shared more. Cited more. Safe forever.
    • advanced search
    • submit works
    • about
    • help
    • contact us
    • login
    View Item 
    •   MOspace Home
    • University of Missouri-Columbia
    • College of Arts and Sciences (MU)
    • Department of Economics (MU)
    • Economics publications (MU)
    • View Item
    •   MOspace Home
    • University of Missouri-Columbia
    • College of Arts and Sciences (MU)
    • Department of Economics (MU)
    • Economics publications (MU)
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.
    advanced searchsubmit worksabouthelpcontact us

    Browse

    All of MOspaceCommunities & CollectionsDate IssuedAuthor/ContributorTitleIdentifierThesis DepartmentThesis AdvisorThesis SemesterThis CollectionDate IssuedAuthor/ContributorTitleIdentifierThesis DepartmentThesis AdvisorThesis Semester

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular AuthorsStatistics by Referrer

    Testing the Bounds: Empirical Behavior of Target Zone Fundamentals

    Miller, J. Isaac
    View/Open
    [PDF] TestingBounds.pdf (477.5Kb)
    Date
    2009
    Format
    Working Paper
    Metadata
    [+] Show full item record
    Abstract
    Standard target zone exchange rate models are based on nonlinear functions of an unobserved economic fundamental, which is assumed to be bounded, similarly to the target zone exchange rates themselves. A violation of this key assumption is a basic structural reason for model failure. Using a novel estimation and testing strategy, we show it is also a testable assumption. Our empirical results cast serious doubt on its validity in practice, providing a primitive reason for well-documented rejections of the basic model. Model failure from this violation is robust to otherwise ideal circumstances (e.g., perfect credibility).
    URI
    http://hdl.handle.net/10355/2538
    Part of
    Working papers (Department of Economics);WP 08-03
    Part of
    Economics publications
    Citation
    Department of Economics, 2009
    Rights
    OpenAccess.
    This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.
    Collections
    • Economics publications (MU)

    Send Feedback
    hosted by University of Missouri Library Systems
     

     


    Send Feedback
    hosted by University of Missouri Library Systems