We examine the time series properties of real interest differentials by employing a battery of unit root tests.
What does RID stand for?
RID stands for Real Interest Differential
This definition appears somewhat frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of RID
We have 107 other meanings of RID in our Acronym Attic
- Research Information and Communications Unit (UK)
- Respiratory Intensive Care Unit
- Respiratory Intermediate Care Unit (various locations)
- Retrograde Infusion of the Cerebral Vein
- Rokko Island Cable Vision (Japan)
- Rhode Island Commission on Women (Providence, RI)
- Range Instruments Development
- Rapporti Interbancari Diretti (type of banking transaction; Italian)
- Reactor Instituut Delft (Dutch: Reactor Institute Delft; Delft, Netherlands)
- Receive Intermediate Demultiplexer (Nortel)
- Recognition Intrusion Distraction (Factor; water safety)
- Record Identification
- Record Unique Identifier (Philips)
- Recording Institute of Detroit (trade school; Detroit, MI)
- Reduce Infection Deaths
- Reduce Inherited Debt (Luzerne County, PA)
- Refractive Index Detector (chromatography)
- Regimented Inmate Discipline (corrections program)
- Regional Industrial Development (various locations)
Samples in periodicals archive:
Edison and Pauls (1993) find a unit root in the real interest rate differential, while Cavaglia (1992) and Wu and Chen (1998) report mean reversion in real interest differentials.
The idea resides on the possibility that real interest parity differentials are temporary and therefore may exist in the short run, however real interest differentials may revert to their equilibrium value over a longer period.