Modelling the Coherence in Short-run Nominal Exchange Rates: A Multivariate Generalized ARCH Model.

A-Tier
Journal: Review of Economics and Statistics
Year: 1990
Volume: 72
Issue: 3
Pages: 498-505

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

A multivariate time series model with time varying conditional variances and covariances, but constant conditional correlations is proposed. In a multivariate regression framework, the model is readily interpreted as an extension of the Seemingly Unrelated Regression (SUR) model allowing for heteroskedasticity. Parameterizing each of the conditional variances as a univariate Generalized Autoregressive Conditional Heteroskedastic (GARCH) process, the descriptive validity of the model is illustrated for a set of five nominal European U.S. dollar exchange rates following the inception of the European Monetary System (EMS). When compared to the pre- EMS free float period, the comovements between the currenciess are found to be significantly higher over the later period. Copyright 1990 by MIT Press.

Technical Details

RePEc Handle
repec:tpr:restat:v:72:y:1990:i:3:p:498-505
Journal Field
General
Author Count
1
Added to Database
2026-01-24