Regime-Switching Temperature Dynamics Model for Weather Derivatives

<table class="fixed-width table-group" id="tab2"><tr><td><table class="table"><colgroup><col style="width:4.18em"/><col style="width:6.53em"/><col style="width:4.27em"/></colgroup><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr class="thead"><td class="align_left"> </td><td class="align_center"> Test statistics </td><td class="align_center"> p-value </td></tr><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr><td class="align_left">Bole</td><td class="align_center"> 1175.2</td><td class="align_center"> 0</td></tr><tr><td class="align_left">Tamale</td><td class="align_center"> 1282.9</td><td class="align_center"> 0</td></tr><tr class="table-tr"><td colspan="3"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

<div>Engle test for residual heteroscedasticity of Bole and Tamale.</div>

International Journal of Stochastic Analysis

tab2

Table 2

Table 2: Regime-Switching Temperature Dynamics Model for Weather Derivatives 