Download or read book Three Empirical Essays on the Nontraded Goods Approach to Real Exchange Rate Determination written by Vikas Kakkar and published by . This book was released on 1996 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Nontraded Goods Prices and Real Exchange Rate Volatility written by Marco Aurelio Hernandez Vega and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation provides new empirical evidence on the importance of nontraded goods in real exchange rate volatility as well as two essays that evaluate the performance of a new trade model á la Ghironi and Melitz [2005] in replicating such evidence. Chapter 2 provides new empirical evidence by looking at more highly disaggregated data than used in previous literature on consumer price index components and trade for the US and Mexico for the period 2002 to 2009. The main empirical results from this exercise suggest that the relative price of nontraded to traded goods (RERN) accounts for between 64% and 73% of the real exchange rate volatility which is significantly higher than that found in past studies (around 30%). The correlation between RERN and the real exchange rate is 71%. In contrast with previous literature lower frequency data increases the importance of RERN in the real exchange rate volatility: for quarterly data it is between 68% and 84% and for annual data the importance is between 78% and 88%. These results provide new evidence against the sticky price theory; while they generally support the Balassa-Samuelson theory, facts regarding the correlation of traded and nontraded goods prices point to the need to modify some features of this theory. Chapter 3 evaluates whether a "new trade" model, where entry of heterogeneous firms into international trade is endogenous, can explain the empirical facts documented in chapter 2 better than can a standard Balassa-Samuelson theory, where nontraded goods are exogenously determined. A symmetric two country dynamic stochastic general equilibrium model with heterogeneous firms and entry and exit from domestic and export markets, á la Ghironi and Melitz (2005), performs reasonably well in certain dimensions. Simulations show that the importance of the relative price of nontraded to traded goods (RERN) can explain between 80% and 89% of real exchange rate fluctuations, and can explain a correlation between RERN and the real exchange rate of 97%. The model fails to replicate the empirical evidence that the relative price of nontraded to traded goods is negatively correlated with the relative price of traded goods. Finally, in chapter 4 I calibrate the model to an asymmetric equilibrium where two different economies interact, one large economy representing the US and one small economy representing Mexico. The calibration will involve updating the value of some exogenous variables like the fixed export costs and re-calibrating the shape parameter k from the Pareto distribution. As a result of this new calibration the steady state of the model matches some of the US-Mexico relationships quite well. For example, the steady state of the model implies that home consumption is four times higher than foreign consumption. This value is close to the one reported by Bergin and Glick [2009]. Home real wage is 1.4 times that of foreign country. This value is significantly smaller than the values reported in other studies where wages in the US are up to eight times higher than in Mexico. Nevertheless, it can be considered a good feature of the model that home wages are higher. I conclude that the asymmetric calibration of the Ghironi and Melitz [2005] model improves its performance in replicating the stylized facts reported in chapter two, although, with some caveats regarding the signs and magnitudes of some of the correlations and the fact that moving from monthly to quarterly frequencies does not increases the importance of the relative price of nontraded to traded goods in explaining real exchange rate volatility.
Download or read book Three Essays on the Empirical Aspects of Models of Exchange Rate Determination written by Michael Kirk Pippenger and published by . This book was released on 1990 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays on Exchange Rate Determination written by Richard Kent Lyons and published by . This book was released on 1987 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Theory and Practice written by John F. Bilson and published by University of Chicago Press. This book was released on 2007-12-01 with total page 542 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume grew out of a National Bureau of Economic Research conference on exchange rates held in Bellagio, Italy, in 1982. In it, the world's most respected international monetary economists discuss three significant new views on the economics of exchange rates - Rudiger Dornbusch's overshooting model, Jacob Frenkel's and Michael Mussa's asset market variants, and Pentti Kouri's current account/portfolio approach. Their papers test these views with evidence from empirical studies and analyze a number of exchange rate policies in use today, including those of the European Monetary System.
Download or read book American Doctoral Dissertations written by and published by . This book was released on 1996 with total page 872 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Economics written by Ronald MacDonald and published by Routledge. This book was released on 2005 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: ''In summary, the book is valuable as a textbook both at the advanced undergraduate level and at the graduate level. It is also very useful for the economist who wants to be brought up-to-date on theoretical and empirical research on exchange rate behaviour.'' ""Journal of International Economics""
Download or read book Real Exchange Rate Levels Productivity and Demand Shocks written by Menzie David Chinn and published by International Monetary Fund. This book was released on 1997-05-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the long-run relationship between the real exchange rate, traded and nontraded productivity levels, and government spending for 14 OECD countries, using recently developed panel cointegration tests. The results indicate that under certain assumptions it is easier to detect cointegration in panel data than in the available time series; moreover, the rate of reversion to long-run equilibrium is estimated with greater precision. Using the model augmented by oil prices, we find that in 1991 (the last year productivity data are available) there is less overvaluation of the U.S. dollar than that implied by a naive version of purchasing power parity.
Download or read book Currencies Commodities and Consumption written by Kenneth W. Clements and published by Cambridge University Press. This book was released on 2013-01-31 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discusses economic issues associated with exchange rates, commodity prices, the economic size of countries and alternatives to PPP exchange rates.
Download or read book Handbook of International Economics written by Peter Bain Kenen and published by . This book was released on 1990 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2003 with total page 700 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstracts of dissertations available on microfilm or as xerographic reproductions.
Download or read book Eurostat OECD Methodological Manual on Purchasing Power Parities 2012 Edition written by OECD and published by OECD Publishing. This book was released on 2012-11-30 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: This manual gives a complete, detailed and up-to-date description of the Eurostat-OECD PPP Programme, including its organisation, the various surveys carried out by participating countries and the ways PPPs are calculated and disseminated. It also provides guidance on the use of PPPs.
Download or read book Exchange Rate Misalignment in Developing Countries written by Sebastian Edwards and published by Johns Hopkins University Press. This book was released on 1988 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.
Download or read book The Economics of Exchange Rates written by Lucio Sarno and published by . This book was released on 2002 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: Table of contents
Download or read book The Journal of Agricultural Economics Research written by and published by . This book was released on 1989 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Open Economy Macroeconomics written by Helmut Frisch and published by Springer. This book was released on 2016-07-27 with total page 437 pages. Available in PDF, EPUB and Kindle. Book excerpt: The integration of market economies is one of the most remarkable features of international economics, which has important implications for macroeconomic performance in open economies. Equally important is the declining relevance of the real versus the monetary theory dichotomy. These papers focus on those aspects of monetary policy which relate to credibility and non-neutrality; the domestic adjustment to foreign shocks; the interdependence of open economies and their strategic interactions. An important section is also devoted to the innovative modelling of exchange rate dynamics.
Download or read book International Evidence on Tradables and Nontradables Inflation written by Jose De Gregorio and published by . This book was released on 1994 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
