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Volatilidad del Precio de la Mezcla Mexicana de Exportación
[Price Volatility of the Mexican Export Crude Oil Blend]

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Author Info
Dávila-Pérez, Javier
Nuñez-Mora, Jose Antonio
Ruiz-Porras, Antonio

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Abstract

We propose a model to estimate the price volatility in of the Mexican Export Crude Oil Blend. The analysis relies on the conditional standard deviations obtained from a GARCH model. Data includes diary oil prices between January 2nd, 1998 and February 14th, 2007. The chosen model is of the GARCH (1,1) type. Asymmetric volatility effects are not detected. Furthermore, the results are compared with an estimate of the historic volatility based on previous returns. Such comparison confirms the convergence of the estimated GARCH conditional variance to its own non conditional one.

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File URL: http://mpra.ub.uni-muenchen.de/3562/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3562.

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Date of creation: 21 Mar 2007
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Handle: RePEc:pra:mprapa:3562

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Related research
Keywords: Volatility Oil ARCH-GARCH Models

Find related papers by JEL classification:
C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models

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  1. Robert S. Pindyck, 2003. "Volatility In Natural Gas And Oil Markets," Working Papers 0312, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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