MODELLING ASYMMETRIC EXCHANGE RATE DEPENDENCE*

International Economic Review - Tập 47 Số 2 - Trang 527-556 - 2006
Andrew J. Patton1
1London School of Economics, U.K

Tóm tắt

We test for asymmetry in a model of the dependence between the Deutsche mark and the yen, in the sense that a different degree of correlation is exhibited during joint appreciations against the U.S. dollar versus during joint depreciations. We consider an extension of the theory of copulas to allow for conditioning variables, and employ it to construct flexible models of the conditional dependence structure of these exchange rates. We find evidence that the mark–dollar and yen–dollar exchange rates are more correlated when they are depreciating against the dollar than when they are appreciating.

Từ khóa


Tài liệu tham khảo

10.2307/2527343

10.1198/016214501750332965

10.1093/rfs/15.4.1137

10.1016/S0304-405X(02)00068-5

10.1198/07350010152596718

10.2307/1925546

Bouyé E. N.Gaussel andM.Salmon “Investigating Dynamic Dependence Using Copulae ”Working Paper City University Business School London 2000a.

Bouyé E. V.Durrleman A.Nikeghbali G.Riboulet andT.Roncalli “Copulas for Finance: A Reading Guide and Some Applications ”Working Paper Groupe de Recherche Opérationnelle Crédit Lyonnais . France 2000b.

Chen X. andY.Fan “Estimation of Copula‐Based Semiparametric Time Series Models ”Journal of Econometrics130(2006) 307–35.

10.1016/S1544-6123(03)00002-3

Chen X. Y.Fan andA. J.Patton “Simple Tests for Models of Dependence Between Multiple Financial Time Series with Applications to U.S. Equity Returns and Exchange Rates ”Discussion Paper 483 Financial Markets Group London School of Economics 2004.

10.1111/j.0391-5026.2001.00055.x

Cherubini U., 2002, Bivariate Option Pricing with Copulas, Applied Mathematical Finance, 8, 69, 10.1080/13504860210136721a

10.1002/9781118673331

10.2307/2527341

10.1093/biomet/65.1.141

Clements M. P. “An Evaluation of the Survey of Professional Forecasters Probability Distributions of Expected Inflation and Output Growth ”Working Paper Department of Economics University of Warwick 2002.

Cook R. D., 1981, A Family of Distributions for Modelling Non‐elliptically Symmetric Multivariate Data, Journal of the Royal Statistical Society, 43, 210

Costinot A. T.Roncali andJ.Teiletche “Revisiting the Dependence between Financial Markets with Copulas ”Working Paper Credit Lyonnais (2000).

Deheuvels P., 1978, La fonction de dépendence empirique et ses propriétés. Un test non paramétrique d'indépendence, Académie Royale de Belgique Bulletin de la Classe des Sciences, 65, 274

10.2307/2527342

10.1162/003465399558526

Embrechts P., 2001, Risk Management: Value at Risk and Beyond, 176

10.2307/1912773

10.1017/S0266466600009063

10.1198/073500104000000370

10.2469/faj.v50.n6.32

10.21314/JOR.2003.082

Fisher R. A., 1932, Statistical Methods for Research Workers

10.2307/253744

Frey R. andA. J.McNeil “Modelling Dependent Defaults ”ETH E‐Collection 2001. Available athttp://e‐collection.ethbib.ethz.ch/show?type=bericht&nr=273.

Galambos J., 1978, The Asymptotic Theory of Extreme Order Statistics

Granger C. W. J., Common Factors in Conditional Distributions for Bivariate Time Series, Journal of Econometrics

10.2307/2527081

10.1162/003465304323023831

Hong Y. “Evaluation of Out‐of‐Sample Density Forecasts with Applications to S&P 500 Stock Prices ”Working Paper Department of Economics Cornell University 2000.

10.3905/jod.1998.407998

Hutchinson T. P., 1990, Continuous Bivariate Distributions, Emphasising Applications

10.1201/b13150

Judd K. L., 1998, Numerical Methods in Economics

10.1111/j.1540-6288.2000.tb01405.x

10.1080/03610917508548422

10.3905/jfi.2000.319253

10.1111/0022-1082.00340

Mills F. C., 1927, The Behaviour of Prices

10.1007/978-1-4757-3076-0

10.2307/1913610

10.1080/01621459.1989.10478795

Patton A. J. “Applications of Copula Theory in Financial Econometrics ”Unpublished Ph.D. dissertation University of California San Diego 2002.

10.1093/jjfinec/nbh006

Patton A. J., Estimation of Multivariate Models for Time Series of Possibly Different Lengths, Journal of Applied Econometrics

10.1093/biomet/25.3-4.379

Ribeiro R. andP.Veronesi “The Excess Comovement of Internatonal Stock Returns in Bad Times: A Rational Expectations Equilibrium Model ”Working Paper Graduate School of Business University of Chicago 2002.

10.1111/1368-423X.t01-1-00071

Rockinger M. andE.Jondeau “Conditional Dependency of Financial Series: An Application of Copulas ”Working Paper Department of Finance HEC School of Management France 2001.

Rodriguez J. C. “Measuring Financial Contagion: A Copula Approach ”EURANDOM Working Paper 2003.

10.3905/jod.2003.319198

Rosenberg J. V. andT.Schuermann “Integrated Risk Management Using Copulas ”Working Paper Federal Reserve Bank of New York 2004.

10.1214/aoms/1177729394

Sancetta A. andS.Satchell “Bernstein Approximations to the Copula Function and Portfolio Optimization ”Working Paper 2001–5 Department of Applied Economics University of Cambridge 2001.

Sklar A., 1959, Fonctions de répartition àn dimensions et leurs marges, Publications de l' Institut Statistique de l'Université de Paris, 8, 229

10.1111/1368-423X.00101

Takagi S., 1999, Changes in Exchange Rates in Rapidly Developing Countries, 185

Thompson S. B. “Evaluating the Goodness of Fit of Conditional Distributions with an Application to Affine Term Structure Models ”Working Paper Department of Economics Harvard University 2002.

10.1016/S0169-2070(02)00009-2