An adequate representation of the technological trend component of yield time series is of crucial importance for the successful design of risk management instruments. However, for many transition and developing countries, the estimation of the technological trend is complicated by the joint...

The application of yield time series in risk analysis prerequisites the estimation of technological trend which might be present in the data. In this paper, we show that in presence of highly volatile yield time series and non-constant technology, the consideration of the weather effect in the...