EconPapers    
Economics at your fingertips  
 

Trade Volatility and the GATT/WTO: Does Membership Make a Difference?

Abdur Chowdhury (), Xuepeng Liu (), Miao Wang () and M. C. Wong
Additional contact information
Miao Wang: Department of Economics Marquette University
M. C. Wong: University of San Francisco

No 2014-02, Working Papers and Research from Marquette University, Center for Global and Economic Studies and Department of Economics

Abstract: The Bitcoin phenomenon, and the technological innovation that made it possible, is interesting - but for investors large and small, the more pertinent question is whether they should buy the virtual currency or avoid it. We analyze a Bitcoin investment from the standpoint of a U.S. investor with a diversified portfolio. Bitcoin investment shows high average return as well as volatility. Mean-variance Spanning tests show that Bitcoin investment offers significant diversification benefits. Well diversified portfolios with a small Bitcoin component (2%) shows small improvement in the risk-return trade-off.

Keywords: trade volatility; WTO; gravity model (search for similar items in EconPapers)
JEL-codes: F02 F13 F14 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://epublications.marquette.edu/econ_workingpapers/34 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mrq:wpaper:2014-02

Access Statistics for this paper

More papers in Working Papers and Research from Marquette University, Center for Global and Economic Studies and Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Andrew G. Meyer ().

 
Page updated 2020-11-23
Handle: RePEc:mrq:wpaper:2014-02