Ajevskis, Viktors; Vītola, Kristīne - 2009
develops an international term structure model which includes EMU entry
plans, proposes a particular estimation method, and … develop a term structure model of interest rates for a country that will join
the euro area in the future. We define the … the price of risk λ
1
to be constant. Let us consider now the case of the
affine term structure model
)() A …