The (in)visible hand in the Libor market: an information theory approach

This paper analyzes several interest rates time series from the United Kingdom during the period 1999 to 2014. The analysis is carried out using a pioneering statistical tool in the financial literature: the complexity-entropy causality Plane. This representation is able to classify different stocha...

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Detalles Bibliográficos
Autores: Fernández Bariviera, Aurelio, Guercio, María Belén, Martinez, Lisana Belén, Rosso, Osvaldo Aníbal
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2015
País:Argentina
Institución:Consejo Nacional de Investigaciones Científicas y Técnicas
Repositorio:CONICET Digital (CONICET)
Idioma:inglés
OAI Identifier:oai:ri.conicet.gov.ar:11336/47919
Acceso en línea:http://hdl.handle.net/11336/47919
Access Level:acceso abierto
Palabra clave:Information Theory Approach
Financial Markets
Libor Manipulation
Interest Rates
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
Descripción
Sumario:This paper analyzes several interest rates time series from the United Kingdom during the period 1999 to 2014. The analysis is carried out using a pioneering statistical tool in the financial literature: the complexity-entropy causality Plane. This representation is able to classify different stochastic and chaoticregimes in time series. We use sliding temporal windows to assess changes in the intrinsic stochastic dynamics of the time series. Anomalous behavior in the Libor is detected, especially around the time of the last financial crisis, that could be consistent with data manipulation.