"Sticky" Cash Flows?

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wadswort
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Joined: Fri Aug 19, 2011 1:55 pm

"Sticky" Cash Flows?

Postby wadswort » Fri Aug 19, 2011 2:02 pm

Hey guys,

I'm running a regression with cash flows in/out of a fund as my dependent variable and the S&P 500 and the VIX index as my independent variables. As part of my analysis, I would like to see if cash flows are sticky. My box-jenkins model states that when the VIX increases, cash flows positively increase . I want to know the following:

If the VIX increases and flows positively increase, but then the VIX suddenly decreases, will cash flows suddenly decrease too? Or are cash flows "sticky?"

How would you recommend I go about this in eviews?

Thanks

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