The Tobit cointegrated vector autoregressive model: An application to the currency market

C-Tier
Journal: Economic Modeling
Year: 2020
Volume: 89
Issue: C
Pages: 88-100

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

The Tobit cointegrated vector autoregressive model proposed in this study extends the existing methodology by allowing the censored variable to be nonstationary. The approach requires deriving the distribution of the cointegration rank test and simulating new critical values. The empirical application refers to the currency market. It has confirmed that the exchange rate is driven by four main forces: inflation, terms of trade, the perception of the country-specific risk, and the state of the currency market. Temporary disequilibria in the currency market arise not only from the “fundamental” factors, but also from the contagion effect.

Technical Details

RePEc Handle
repec:eee:ecmode:v:89:y:2020:i:c:p:88-100
Journal Field
General
Author Count
2
Added to Database
2026-01-25