Estimating the discount rate policy reac
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Woon Gyu Choi
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Article
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1999
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John Wiley and Sons
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English
β 245 KB
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This paper estimates a policy rule that explains the sign and the magnitude of the Federal Reserve's (Fed's) discount rate changes. It sets out a two-sided Type II Tobit model and develops a procedure for its estimation, considering the discrete and censored nature of the changes. The results sugges