Article Abstract:
The news approach to exchange-rate modelling is tested by examining the impact of the weekly market-determined bank rate of the Bank of Canada on the bilateral exchange rate of the Canada/US dollar. The 91-day Treasury bill yield is used in the modelling of the innovations, the unanticipated component in the market-determined bank rate. Results show that the impact of the innovations of the bank rate on the bilateral spot rate depends on market perception of the monetary policy regime in which the central bank is operating.
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Article Abstract:
The degree of distortion of the BDS statistics from N(0,1), where N equals the end of a time series, for a real exchange rate series fitted with a GARCH model is analyzed. Consecutive daily closing rates of the French Franc: German Mark exchange rate are used as data. Results show that inferential errors may occur when the critical points of the standard normal distribution are used during the assessment of BDS statistics significance for the standardized residuals of GARCH models of exchange rate changes.
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Article Abstract:
A differential game formulation used to study Canada's Pacific halibut fishery is presented. The study reveals that harvesting levels at optimal conditions are obtained from the profit maximization criterion. Also, the study shows that the effort and yield from aggregate steady-state fishing increases with the number of fishermen that harvest the stock. The approach used provides a better explanation of what has occurred in the fishery, as compared to Cook's optimal control model.
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