IDEAS home Printed from
   My bibliography  Save this article

The failure of financial econometrics: confirmation and publication biases




Confirmation and publication biases are demonstrated by using an example in which the extent of exchange rate misalignment (as applied to the yuan/dollar exchange rate) is measured by using six different models. Testing these models initially reveals that they form cointegrating vectors according to one test but not the other two, thus creating the potential for confirmation bias. A wide range of estimates of misalignment is produced, allowing for both confirmation and publication bias. It is argued that financial econometrics is the tool that enables these biases in finance research.

Suggested Citation

  • Moosa, Imad, 2013. "The failure of financial econometrics: confirmation and publication biases," Journal of Financial Transformation, Capco Institute, vol. 36, pages 43-48.
  • Handle: RePEc:ris:jofitr:1542

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    confirmation bias; publication bias; financial econometrics;

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1542. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Shahin Shojai). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.