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Journal of Finance Vol. 37 No. 4 1982

On Unit Roots and the Empirical Modeling of Exchange Rates

Richard A. Meese; Kenneth J. Singleton1

1 Smith Institute

Abstract

Tests are conducted for the presence of unit roots in the autoregressive representations of the logarithms of spot and forward exchange rates. The results from these tests provide one explanation for some of the conflicting conclusions which emerge from recent empirical papers on the foreign exchange market.

DOI
10.1111/j.1540-6261.1982.tb03595.x
Volume
37
Issue
4
Pages
1029-1035
Language
en
Sources
openalex crossref

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