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Cointegration, Fractional Cointegration, and Exchange Rate Dynamics

Publication ,  Journal Article
BAILLIE, RT; BOLLERSLEV, T
Published in: Journal of Finance
January 1, 1994

Multivariate tests due to Johansen (1988, 1991) as implemented by Baillie and Bollerslev (1989a) and Diebold, Gardeazabal, and Yilmaz (1994) reveal mixed evidence on whether a group of exchange rates are cointegrated. Further analysis of the deviations from the cointegrating relationship suggests that it possesses long memory and may possibly be well described as a fractionally integrated process. Hence, the influence of shocks to the equilibrium exchange rates may only vanish at very long horizons. 1994 The American Finance Association

Duke Scholars

Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 1994

Volume

49

Issue

2

Start / End Page

737 / 745

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
 

Citation

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BAILLIE, R. T., & BOLLERSLEV, T. (1994). Cointegration, Fractional Cointegration, and Exchange Rate Dynamics. Journal of Finance, 49(2), 737–745. https://doi.org/10.1111/j.1540-6261.1994.tb05161.x
BAILLIE, R. T., and T. BOLLERSLEV. “Cointegration, Fractional Cointegration, and Exchange Rate Dynamics.” Journal of Finance 49, no. 2 (January 1, 1994): 737–45. https://doi.org/10.1111/j.1540-6261.1994.tb05161.x.
BAILLIE RT, BOLLERSLEV T. Cointegration, Fractional Cointegration, and Exchange Rate Dynamics. Journal of Finance. 1994 Jan 1;49(2):737–45.
BAILLIE, R. T., and T. BOLLERSLEV. “Cointegration, Fractional Cointegration, and Exchange Rate Dynamics.” Journal of Finance, vol. 49, no. 2, Jan. 1994, pp. 737–45. Scopus, doi:10.1111/j.1540-6261.1994.tb05161.x.
BAILLIE RT, BOLLERSLEV T. Cointegration, Fractional Cointegration, and Exchange Rate Dynamics. Journal of Finance. 1994 Jan 1;49(2):737–745.
Journal cover image

Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 1994

Volume

49

Issue

2

Start / End Page

737 / 745

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment