How is the exchange rate affected by differences in the interest rate? What is the relationship between banks' deposit rates and mortgage rates? These are examples of questions that Kristofer Månsson approaches in a new way in his second doctoral thesis in the space of two years.
Econometrics is the use of statistical techniques to evaluate economic theories. In his recent doctoral thesis, Kristofer Månsson uses modern econometric methods to examine some of these theories.
“Most econometric methods assume that there are always linear relationships between economic variables. I have let that assumption go, and instead I measure non-linear relationships”, says Kristofer Månsson. In his thesis he uses the methods of other researchers in part, but also methods he developed himself in his first doctoral thesis, which was in Statistics.
One of the theories that Kristofer Månsson examines is how the difference in interest rates between countries can affect the exchange rate. If the difference between, say, Sweden's rate and the rate in the U.S. changes, how does that affect the exchange rate in the long and short term?
“The econometric methods that have been used to evaluate economic theory have sometimes perhaps been a bit too simple. By using more sophisticated methods, one can obtain more information on the relationship between economic variables”, says Kristofer Månsson, who obtained his PhD in statistics in 2012, and has written his second doctoral thesis in just two years.
“The fact that I work together with researchers in both economics and statistics was an important factor. Otherwise I would probably never have gotten the idea to do this. I've had great mentors and am grateful that I received funding from the foundation Sparbankernas forskningsstiftelse, but I also work hard. When I sit down and think about a new idea, or when I think of something new while discussing with others, that is when I find my motivation. I simply enjoy it!
Kristofer Månsson succesfully defended his doctoral thesis in Economics on Thursday, 10 April at Jönköping International Business School. The thesis title is Essays on Nonlinearities and Time Scales in Macroeconomics and Finance . Faculty examiner was Professor Peter Egger, ETH, Zürich, Switzerland. Examining committee was Professor Gary Cook, Liverpool University, Associate professor Linda Andersson, Örebro University, and Professor Almas Heshmati, JIBS. Chairperson at the defence was Professor Börje Johansson, JIBS.