Ahrens, Ralf; Reitz, Stefan - In: Journal of Evolutionary Economics 15 (2004) 1, pp. 65-82
In this study a regime-switching approach is applied to estimate the chartist and fundamentalist (c&f) exchange rate model originally proposed by Frankel and Froot (1986). The c&f model is tested against alternative regime-switching specifications applying likelihood ratio tests. Nested...