About this work
Studies how different OTC derivative instruments and counterparties interact with OECD economic activity, using a vector error-correction model.
Contract differences matter for understanding the relation between derivatives and aggregate activity. The analysis separates instruments and counterparties instead of treating the OTC market as a single homogeneous series.
Cite this work
Gordon Bodnar, Jonathan Fortun, Jaime Marquez (2017). OTC Derivatives and Global Economic Activity: An Empirical Analysis. Journal of Risk and Financial Management, 10(2), 1–23. https://doi.org/10.3390/jrfm10020013