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ESTIMATION OF THE TIME-VARYING RISK PREMIUM IN THE CZECH FOREIGN EXCHANGE MARKET.

Authors :
Pošta, Vít
Source :
Prague Economic Papers; 2012, Vol. 21 Issue 1, p3-17, 15p
Publication Year :
2012

Abstract

The paper focuses on both the theoretical and actual estimates of foreign exchange risk premium of the Czech Republic's koruna particularly to euro and U.S. dollar. The Kalman filtering procedure is used to model the risk premium. According to the author, the model for the exchange rate from koruna to euros showcased a notifiable explanation on the behaviour of spot exchange rate.

Details

Language :
English
ISSN :
12100455
Volume :
21
Issue :
1
Database :
Supplemental Index
Journal :
Prague Economic Papers
Publication Type :
Academic Journal
Accession number :
74996758
Full Text :
https://doi.org/10.18267/j.pep.407