Friday, January 27, 2006
Bias in the estimate of speed of real exchange rate adjustment
On the speed of adjustment in ESTAR models when allowance is made for bias in estimation: "The purpose of this letter is to show, via simulation and bootstrap methods, that the estimates of the speed of adjustment parameter obtained in ESTAR models of the real exchange rate are upward biased in sample sizes typically employed in empirical work."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment