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<h1 class="ep_tm_pagetitle">A Re-examination of the Real Interest Parity Condition Using Threshold Cointegration</h1>
<p style="margin-bottom: 1em" class="not_ep_block"><span class="person_name">Cooray, Arusha</span> (2007) <xhtml:em>A Re-examination of the Real Interest Parity Condition Using Threshold Cointegration.</xhtml:em> Discussion Paper. University of Tasmania, School of Economics & Finance, Tasmania.</p><p style="margin-bottom: 1em" class="not_ep_block"></p><table style="margin-bottom: 1em" class="not_ep_block"><tr><td valign="top" style="text-align:center"><a onmouseover="EPJS_ShowPreview( event, 'doc_preview_2678' );" href="http://eprints.utas.edu.au/2139/1/DP2007_02_Cooray.pdf" onmouseout="EPJS_HidePreview( event, 'doc_preview_2678' );"><img alt="[img]" src="http://eprints.utas.edu.au/style/images/fileicons/application_pdf.png" class="ep_doc_icon" border="0" /></a><div class="ep_preview" id="doc_preview_2678"><table><tr><td><img alt="" src="http://eprints.utas.edu.au/2139/thumbnails/1/preview.png" class="ep_preview_image" border="0" /><div class="ep_preview_title">Preview</div></td></tr></table></div></td><td valign="top"><a href="http://eprints.utas.edu.au/2139/1/DP2007_02_Cooray.pdf"><span class="ep_document_citation">PDF</span></a> - Requires a PDF viewer<br />58Kb</td></tr></table><div class="not_ep_block"><h2>Abstract</h2><p style="padding-bottom: 16px; text-align: left; margin: 1em auto 0em auto">Threshold cointegration is employed in this study to test the real interest parity condition between the UK and the US. Evidence supports the asymmetric adjustment of real
interest rates. The threshold error correction models indicate that negative deviations from long run real interest parity are eliminated faster than positive deviations.</p></div><table style="margin-bottom: 1em" cellpadding="3" class="not_ep_block" border="0"><tr><th valign="top" class="ep_row">Item Type:</th><td valign="top" class="ep_row">Report (Discussion Paper)</td></tr><tr><th valign="top" class="ep_row">Keywords:</th><td valign="top" class="ep_row">REPEC, real interest parity, threshold cointegration, threshold error correction, asymmetric adjustment, non-linear adjustment</td></tr><tr><th valign="top" class="ep_row">Subjects:</th><td valign="top" class="ep_row"><a href="http://eprints.utas.edu.au/view/subjects/360000.html">360000 Policy and Political Science</a></td></tr><tr><th valign="top" class="ep_row">ID Code:</th><td valign="top" class="ep_row">2139</td></tr><tr><th valign="top" class="ep_row">Deposited By:</th><td valign="top" class="ep_row"><span class="ep_name_citation"><span class="person_name">Ms Tracy Kostiuk</span></span></td></tr><tr><th valign="top" class="ep_row">Deposited On:</th><td valign="top" class="ep_row">10 Oct 2007 14:35</td></tr><tr><th valign="top" class="ep_row">Last Modified:</th><td valign="top" class="ep_row">09 Jan 2008 02:30</td></tr><tr><th valign="top" class="ep_row">ePrint Statistics:</th><td valign="top" class="ep_row"><a target="ePrintStats" href="/es/index.php?action=show_detail_eprint;id=2139;">View statistics for this ePrint</a></td></tr></table><p align="right">Repository Staff Only: <a href="http://eprints.utas.edu.au/cgi/users/home?screen=EPrint::View&eprintid=2139">item control page</a></p>
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<div align="center"></div></td>
</tr>
</table>
</body>
</html>
