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Article
Political Risk and the Expectations Hypothesis
Economics Letters
  • Barbara Caporale, Ohio University - Main Campus
  • Tony Caporale, University of Dayton
Document Type
Article
Publication Date
8-1-2008
Abstract
This paper develops and empirically supports, using 3 and 6 month interest rates, a theory that political risk can explain the shifting term premia found in U.S. data. We find that incorporating these political regime shifts yield results that support the expectations hypothesis.
Inclusive pages
178–180
ISBN/ISSN
0165-1765
Comments

Permission documentation is on file.

Publisher
Elsevier
Peer Reviewed
Yes
Citation Information
Barbara Caporale and Tony Caporale. "Political Risk and the Expectations Hypothesis" Economics Letters Vol. 100 Iss. 2 (2008)
Available at: http://works.bepress.com/tony_caporale/46/