de Jong, Eelke; Verschoor, Willem F.C.; Zwinkels, Remco C.J. - In: Journal of International Money and Finance 29 (2010) 8, pp. 1652-1669
We develop and estimate a dynamic heterogeneous agent model for the EMS period. Our empirical results suggest that the existence of heterogeneous interacting agents is indeed a possible explanation for the dynamics of exchange rates during the EMS. We find strong evidence of heterogeneous...