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Large differences in national price levels exist across countries. In this paper, I develop a general equilibrium model predicting that these differences should be related to countries’ exchange rate regimes. My empirical findings confirm that countries with fixed exchange rate regimes have...
Persistent link: https://www.econbiz.de/10005420605
-i Efkar and Vakit, in addition to data of foreign exchange rates and prices in the çIstanbul Bourse, this paper examines how …
Persistent link: https://www.econbiz.de/10011882665
-i Efkar and Vakit, in addition to data of foreign exchange rates and prices in the İstanbul Bourse, this paper examines how …
Persistent link: https://www.econbiz.de/10011673311
Persistent link: https://www.econbiz.de/10005361358
with sticky goods prices. If prices are held fixed for at least one year, risk aversion is high, and preferences are …
Persistent link: https://www.econbiz.de/10005367679
This paper estimates monthly pass-through ratios from import prices to consumer prices in real time. Conventional time … series methods impose restrictions to generate exogenous shocks on exchange rates or import prices when estimating pass …-through coefficients. Instead, a natural experiment based on data releases defines our shock to foreign prices. Our estimation strategy …
Persistent link: https://www.econbiz.de/10005367960
We reexamine the evidence for border effects in deviations from the law of one price, using data for consumer prices … rather than price index data. We find evidence of border effects both in the levels of prices and the percentage change in … prices. Even accounting for distance between cities and relative population sizes, we find that the absolute difference …
Persistent link: https://www.econbiz.de/10005368324
We reexamine the effect of the U.S.-Canadian border on integration of markets. The paper updates work from our earlier paper, Engel and Rogers (1996). We consider alternative measures of deviations from the law of one price. We pay special attention to the effect of the U.S.-Canada free trade...
Persistent link: https://www.econbiz.de/10005372546
Persistent link: https://www.econbiz.de/10005346814
Sticky price monetary models of exchange rates, while reasonable theoretically, have been disappointing empirically. Out-of-sample predictions have been little or no better than those from a naive model of no change. The most likely reason is that shocks to the market's expectation of the future...
Persistent link: https://www.econbiz.de/10005352307