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11.2. A SECOND GENERATION MODEL 345Bibliography1. Akaike, Hirotugu. 1974. “A New Look at the Statistical ModelIdentiÞcation.” IEEE Transactions on Automatic Control AC-19:pp. 716—723.2. Andrews, Donald. 1991. “Heteroskedasticity and AutocorrelationConsistent Covariance Matrix Estimation.” Econometrica59: pp. 817—58.3. Arrow, Kenneth J. 1964. “The Role of Securities in the OptimalAllocation of Risk-Bearing.” Review of Economic Studies 31: pp.91—96.4. Backus, David, Alan Gregory, and Chris I. Telmer. 1993. “Accountingfor Forward Rates in Markets for Foreign Currency.”Journal of Finance 48: pp. 1887-1908.5. Backus, David, Patrick J. Kehoe, and Finn E. Kydland. 1992.“<strong>International</strong> Real Business Cycles.” Journal of Political Economy100: pp. 745—775.6. Balassa, Bela. 1964. “The Purchasing Power Parity Doctrine: AReappraisal.” Journal of Political Economy 72: pp. 584—596.7. Barro, Robert J. and David B. Gordon. 1983. “A Positive Theoryof Monetary Policy in a Natural Rate Model.” Journal of PoliticalEconomy 91: pp.589—610.8. Bertola, Guiseppe and Ricardo J. Caballero. 1992. “Target Zonesand Realignments.’ American Economic Review 82: pp. 520—36.9. Bekaert, Geert. 1996. “The Time Variation of Risk and Return inForeign Exchange Markets: A General Equilibrium Perspective.”Review of Financial Studies 9: pp. 427—70.10. Betts, Caroline and Michael B. Devereux. 1998. “Exchange RateDynamics in a Model of Pricing-To-Market.” Journal of <strong>International</strong>Economics forthcoming.11. Beveridge, Steven and Charles R. Nelson. 1981. “A New Approachto Decomposition of Economic Time Series into Permanentand Transitory Components with Particular Attention toMeasurement of the ‘Business Cycle.”’ Journal of Monetary Economics7: pp.151-74.

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