The Portfolio Selection Approach and Short‐Run Econometric Models of Capital Flows and the Foreign Exchange Market: A Theoretical Analysis

Abstract

This study attempts to provide a systematic theoretical analysis of the portfolio selection approach to the determination of inter‐regional and international capital flows, and to identify the implications of this analysis for the appropriate specification of short‐run econometric models of the foreign exchange market.

Citation

McGregor, P.G. (1981), "The Portfolio Selection Approach and Short‐Run Econometric Models of Capital Flows and the Foreign Exchange Market: A Theoretical Analysis", Journal of Economic Studies, Vol. 8 No. 2, pp. 3-24. https://doi.org/10.1108/eb002524