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Travel and leisure market records a consecutive robust development and turn into among the fastest financial sectors. Numerous studies proposed distinct forecasting fashions to predict the dynamics of this sector and provide early recommendations for traders and policy makers. In this paper, we examine the forecasting efficiency of easy transition autoregressive (STAR) and linear autoregressive (AR) models using the month-to-month returns of Turkey and FTSE travel and leisure indices from April 1997 to August 2016.
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