Showing 1 - 10 of 42
This paper investigates a monetary model of exchange rate determination: an extension of the Krugman basic target zone model with price inertia applied to the French Franc. We consider a novel theoretical argument, the Threshold Cointegration, such that the long-run relationship between the...
Persistent link: https://www.econbiz.de/10005669452
The purpose of this study is to compare the performances of three different weighting schemes for a currency basket in terms of relative stability in the tunisian economy. The three alternative policy peg are: (1) a trade-weighted currency basket, (2) the basket suggested by Lipshitz and...
Persistent link: https://www.econbiz.de/10005479072
A la suite de Lipsschitz et Sundararajan (1980), nous considerons que le panier optimal est celui qui reduit les fluctuations du taux de change effectif reel autour de son niveau d'equilibre. Cependant, contrairement a ces auteurs, nous tenons compte dans la determination du panier optimal, des...
Persistent link: https://www.econbiz.de/10005634332
This paper questions the link between the establishment of a common currency among several countries and the necessity of political coordination. It begins by discussing why conducting a single monetary policy is thought to be easier within a single political unit. It then proceeds to enquire...
Persistent link: https://www.econbiz.de/10005669485
This paper constructs a two-country overlapping generations model with two distinct fiat monies in which seigniorage revenues are used to finance a local public good. Countries differ both in endowments and in the preference for the public good. Under perfect mobility of financial assets...
Persistent link: https://www.econbiz.de/10005669427
We compare the dunamics under myopic foresight and under perfect foresight in an overlapping generations model with capital accumulation and two-period lived individuals. When the rational dynamics are defined and the myopic dynamics are monotonic, the study of myopic foresight allows to...
Persistent link: https://www.econbiz.de/10005634380
This paper examines the pattern of capital mobility in a two-country overlapping generations world in which production uses three inputs capital, labor and land. The steady-state welfare consequences of opening countries to financial capital or labor mobility are then compared. In particular, it...
Persistent link: https://www.econbiz.de/10005779674
This paper proposes a new kind of asymmetric GARCh where the conditional variance obeys two different regimes with a smooth transition function. In one formulation variance reacts differently to negative and positive shocks while a second formulation, small and big shocks have separate effects.
Persistent link: https://www.econbiz.de/10005479014
We propose a test for spatial correlation in Probit models that is a joint test for exclusion of spatially lagged-dependent variables and absence of spatial-error correlation. We give a maximum-likelihood justification for the test but use a simulations approach rather than relying on its...
Persistent link: https://www.econbiz.de/10005479040
When a model is nonlinear, boostrap testing can be expensive because of the need to perform at least one nonlinear estimation for every bootstrap sample. We show that it may be possible to reduce computational costs by performing only a fixed, small number of Newton steps or artificial...
Persistent link: https://www.econbiz.de/10005479052