The Review of Economics and Statistics Vol. 76 No. 2 1994
Exchange Rate Expectations and Functional Misspecification
Abstract
The authors employ the Cooley-Prescott adaptive model to examine for functional misspecification in three commonly used exchange rate expectation models. They also test for heterogeneity among forecasts. The authors find no serious misspecification problem but some heterogeneity in expectations. These test results are confirmed by various other regression specification tests.
- DOI
- 10.2307/2109899
- Volume
- 76
- Issue
- 2
- Pages
- 393
- Sources
- crossref openalex