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Title: |
Variability Measurements and Choice of
Exchange Rate System: Asian versus Industrialized Countries |
| Author: |
So, Jacky C. |
| Author
Affiliation: |
Southern IL U |
| Source: |
International Economic Journal, Winter 1991, v. 5, no. 4, pp. 43-61 |
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Publication Date: |
Winter 1991 |
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Abstract: |
This paper examines whether the exchange
rate movements of six Asian countries and six industrialized countries
are normally distributed. This study also uses stochastic dominance to
determine whether risk averse investors would prefer the fixed exchange
rate system to the floating exchange rate system. The author's empirical
results show that most exchange rate changes are non-normal stable.
Results from the stochastic dominance technique indicate that not all
risk averse individuals will necessarily prefer one exchange rate system
to the other. |
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