Series: IMF Working Papers
Author(s): Jacques Miniane , and Benoît Mercereau
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2004
Keywords: present value model, model evaluation, correlation, probability, covariance, statistic, Bayesian Analysis, Model Evaluation and Selection, Open Economy Macroeconomics,
Under near-singularity conditions typically generated by persistence in current account data the predictions of present value models become extremely sensitive to small sample estimation error. Moreover, traditiona...