Wu, Jyh-Lin; Lee, Chingnun; Wang, Tzu-Wei - In: Journal of International Money and Finance 30 (2011) 3, pp. 572-586
The purpose of this paper is to examine the source of a real exchange-rate adjustment based on the impulse-response function constructed from local projections when the true data-generating process (DGP) is unknown. This work extends the local-projection method proposed by Jordà [2005....