Contagion, Spillover, and Interdependence.

This paper reviews the empirical literature on international spillovers and contagion. Theoretical models of spillover and contagion imply that the reduced-form observable variables suffer from two possible sources of bias: endogeneity and omitted variables. These econometric problems, in combinatio...

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Publicado en:Economía Vol. 19; no. 2; pp. 69 - 100
Autor principal: RIGOBÓN, ROBERTO
Formato: Artículo
Publicado: London School of Economics & Political Science Spring2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Contagion, Spillover, and Interdependence.
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        au: RIGOBÓN, ROBERTO
        affil: Massachusetts Institute of Technology
      su:
        Nonlinear regression
        Heteroscedasticity
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          Nonlinear regression
          Heteroscedasticity
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        contagion
        heteroskedasticity
        Identification
        contagion
        heteroskedasticity
        Identification
      ab: This paper reviews the empirical literature on international spillovers and contagion. Theoretical models of spillover and contagion imply that the reduced-form observable variables suffer from two possible sources of bias: endogeneity and omitted variables. These econometric problems, in combination with the heteroskedasticity that plagues the data, produce time-varying biases. Several empirical methodologies are evaluated from this perspective: nonparametric techniques, such as correlations and principal components; and parametric methods, such as OLS, VAR, event studies, ARCH, and nonlinear regressions. The paper concludes that there is no single technique that can solve the full-fledged problem and discusses three methodologies that can partially address some of the questions in the literature.
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    language: English
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