Forward rates as predictors of future spot rates in small open economies: The case of Kuwait
AbstractThe relationship between forward and future spot rates appears to be the same for Kuwait as for larger developed countries. Bid-ask spreads do not appear to affect the relationship. But cointegration, unit root and frequency domain tests suggest that there may be a stronger long-run than short-run relationship. Copyright Kluwer Academic Publishers 1991
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 2 (1991)
Issue (Month): 2 (June)
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Web page: http://www.springerlink.com/link.asp?id=100323
risk premia; forward rates as predictors of spot; Kuwait; transaction costs; portfolio adjustment;
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