Friday, March 28, 2008
Dr. David Cushman, Westminster College professor of economics and chair of Economics and Business Department, presented "VAR Estimation of a Simple Portfolio Balance Model for the Canadian-U.S. Exchange Rate" at the Eastern Economic Association annual conference March 7 in Boston.
"A line of work I have been pursuing for several years involves the effects of U.S. and Canadian national and international debt on the Canadian-U.S dollar exchange rate, and a paper I published last summer represents one version of this work," Cushman said. "But the premise of this updated paper is that a simpler model may actually perform better over time, as economies change, than the more complicated model in the Review of Financial Economics paper."
The approach in this paper bears out this premise, according to Cushman, because it explains exchange rate behavior better over a longer period of time than the earlier paper did. The conference paper indicates that recent declines in Canadian debt have played a more important role than recent increases in U.S. debt in the current fall of the U.S. dollar against the Canadian dollar. The most recent paper includes three years of additional data and all econometrics were redone.
Cushman, who holds the Captain William McKee Chair of Economics and Business, has been with Westminster since 2005. He earned an undergraduate degree from Stetson University and a master's and Ph.D. from Vanderbilt University.
Before coming to Westminster, he taught at the University of New Orleans, the University of North Carolina, Vanderbilt University, the University of South Florida, and the University of Saskatchewan (Canada).
Contact Cushman at (724) 946-7169 or e-mail firstname.lastname@example.org for additional information.
About Westminster College...
Founded in 1852 and related to the Presbyterian Church (U.S.A.), Westminster College is ranked 15th among liberal arts colleges, according to the Washington Monthly 2007 Annual College Guide. Westminster is a national leader in graduation rate performance, according to U.S. News Guide to America's Best Colleges, and is one of the most affordable national liberal arts colleges in Pennsylvania. Westminster is also honored as one of "The Best 366 Colleges" and "Best in the Northeast" by The Princeton Review, and was recognized by the Templeton Guide as a "Character Building College."
Nearly 1,600 undergraduate and graduate students benefit from individualized attention from dedicated faculty while choosing from 41 majors and nearly 100 organizations on the New Wilmington, Pa., campus.