Delatte, Anne-Laure; López-Villavicencio, Antonia - In: Journal of Macroeconomics 34 (2012) 3, pp. 833-844
The aim of this paper is to investigate the asymmetric effect of exchange rate variations on prices over the short- and long-run in four major developed countries. To this end, we estimate a mark-up model for prices using a novel and simple asymmetric cointegrating model, with positive and...