Unit Roots Tests: Evidence from the Foreign Exchange Futures Market

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1987
Volume: 22
Issue: 1
Pages: 101-108

Authors (2)

Doukas, John (Old Dominion University) Rahman, Abdul (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

In this paper, tests are conducted for the presence of unit roots in the autoregression representation of foreign exchange currency futures price series. The results obtained from five different currency futures over the 1977–1983 period suggestthat foreign currency futures rates have autoregressive representations with a singleunit root (i.e., borderline nonstationarity). In view of this result, it appears thatthe process generating the natural logarithm of foreign currency futures rates may well be approximated by random walks.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:22:y:1987:i:01:p:101-108_01
Journal Field
Finance
Author Count
2
Added to Database
2026-01-25