Is Beta-<italic>t</italic>-EGARCH(1,1) superior to GARCH(1,1)?

C-Tier
Journal: Applied Economics
Year: 2015
Volume: 47
Issue: 17
Pages: 1764-1774

Authors (2)

Szabolcs Blazsek (Mercer University) Marco Villatoro (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

Statistical performance, in-sample point forecast precision and out-of-sample density forecast precision of GARCH(1,1) and Beta-<italic>t</italic>-EGARCH(1,1) models are compared. We study the volatility of nine global industry indices for period from April 2006 to July 2010. Competing models are estimated for periods before, during and after the United States (US) financial crisis of 2008. The results provide evidence of the superior out-of-sample predictive performance of Beta-<italic>t</italic>-EGARCH compared to GARCH after the US financial crisis.

Technical Details

RePEc Handle
repec:taf:applec:v:47:y:2015:i:17:p:1764-1774
Journal Field
General
Author Count
2
Added to Database
2026-01-24