Date of Award

1-1-2015

Thesis Type

phd

Document Type

Thesis

Divisions

inst1

Department

Institute of Graduate Studies

Institution

Universiti Malaya

Abstract

Recent literature has suggested that one explanation of the forward bias puzzle is the validity of econometric inference in testing the forward rate unbiasedness hypothesis (FRUH), which results in biased or size distortion. This is due to the highly persistent behaviour of the forward discount. Two models of time series with a highly persistent process are quite successful in explaining the puzzle; long memory and root near unity. However, Choi and Zivot (2007), who focus on long memory, and Sakoulis et al. (2010), who focus on the autoregressive (

Note

Thesis (PhD) - Institute of Graduate Studies, Universiti Malaya, 2015.

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