Regime switching cointegration tests for the Asian stock index futures: evidence for MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng, and SGX straits times indices

Min Hsien Chiang, Jo Yu Wang

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This study applies a cointegration system that considers regime shifts in order to study the long-run relationship between the stock index and stock index futures markets. The MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng, and Singapore Exchange (SGX) Straits Times indices are examined. The empirical evidence shows that the cointegration system with regime shifts performs better than the usual cointegration system without considering regime shifts.

Original languageEnglish
Pages (from-to)285-293
Number of pages9
JournalApplied Economics
Volume40
Issue number3
DOIs
Publication statusPublished - 2008 Feb

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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