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Testing Further Restrictions on Portfolio Models

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Author Info
McLaren, Keith R
Upcher, Mark R

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Abstract

Further sets of restrictions that can arise from the theory of portfolio models are examined. These are of two major classes: variance-covariance restrictions arising from explicit attention to the introduction of the error term, restrictions on the interest-rate response matrix which have not been fully accounted for in previous studies. Under certain assumptions a "reverse regression" procedure for estimation becomes more appropriate. A hierarchy of restrictions is developed, and estimation and testing are demonstrated using an empirical application. Copyright 1986 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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Publisher Info
Article provided by Blackwell Publishing in its journal Australian Economic Papers.

Volume (Year): 25 (1986)
Issue (Month): 47 (December)
Pages: 193-205
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Handle: RePEc:bla:ausecp:v:25:y:1986:i:47:p:193-205

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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