Non-linearities, regime switching and the relationship between Asian equity and foreign exchange markets

This paper explores the possibility of a non-linear relationship between Asian equity and foreign exchange markets. The non-linearity is modeled using a regime-switching Markov model. We find evidence of non-linearities where the effect of changes in the exchange rate on stock market returns is regi...

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Bibliographic Details
Main Authors: Mark J. Holmes, Nabil Maghrebi
Format: Default Preprint
Published: 2002
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Online Access:https://hdl.handle.net/2134/359
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