Gandolfo, Giancarlo; Padoan, Pietro Carlo; Paladino, … - In: Eastern Economic Journal 16 (1990) 2, pp. 101-113
After presenting the structural models of exchange-rate determination, the authors show that their out-of-sample predictive performance of the lira/$ exchange rate is inferior to that of the random walk model. Only by moving away from these single-equation, semireduced form models toward...