Method evidence record
EGARCH
EGARCH is an asymmetric GARCH variant, introduced by Nelson in 1991, that models the leverage effect in which bad news raises volatility more than good news of the same size. It captures the negative-shock asymmetry of financial return series by modelling the logarithm of the conditional variance.
Source record
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Exponential Generalised Autoregressive Conditional Heteroskedasticity
Taxonomic method record · regression-model / econometrics
- Nelson, D. B. (1991). Conditional Heteroskedasticity in Asset Returns: A New Approach. Econometrica, 59(2), 347-370. · DOI 10.2307/2938260
- Engle, R. F. & Ng, V. K. (1993). Measuring and Testing the Impact of News on Volatility. The Journal of Finance, 48(5), 1749-1778. · DOI 10.1111/j.1540-6261.1993.tb05127.x
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