Noncausality and the commodity currency hypothesis

A-Tier
Journal: Energy Economics
Year: 2017
Volume: 65
Issue: C
Pages: 424-433

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper provides new evidence on the role of exchange rates in forecasting commodity prices. Consistent with previous studies, we find that commodity currencies hold out-of-sample predictive power for commodity prices when using standard linear predictive regressions. After we reconsider the evidence using noncausal autoregressions, which provide a better fit to the data and are able to accommodate the effects of nonlinearities and omitted variables, the predictive power of exchange rates disappears.

Technical Details

RePEc Handle
repec:eee:eneeco:v:65:y:2017:i:c:p:424-433
Journal Field
Energy
Author Count
2
Added to Database
2026-01-25