Brüggemann, Ralf; Riedel, Jana - Fachbereich Wirtschaftswissenschaften, Universität Konstanz - 2010
We empirically analyze Taylor-type equations for short-term interest rates in the United Kingdom using quarterly data from 1970Q1 to 2006Q2. Starting from strong evidence against a simple linear Taylor rule, we model nonlinearities using logistic smooth transition regression (LSTR) models. The...