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Contents -- I. INTRODUCTION -- II. EVALUATING MISALIGNMENT ASSESSMENTS FOR ADVANCED ECONOMIES -- III. CROSS-SECTION ANALYSIS OF THE FALL 2006 CGER ESTIMATES -- IV. CONCLUSION -- REFERENCES -- Appendix I. Pooled Regression Results -- Appendix II. Description of Diagnostic Statistics -- Appendix...
Persistent link: https://www.econbiz.de/10012682179
Intro -- Contents -- I. INTRODUCTION -- II. THE MACROECONOMIC BALANCE APPROACH -- III. THE EXTENDED PPP APPROACH: SINGLE-COUNTRY ESTIMATES -- IV. THE EXTENDED PPP APPROACH: PANEL DATA ESTIMATES -- V. CONCLUDING REMARKS -- APPENDIX. METHODOLOGICAL DIFFICULTIES OF DEALING WITH SLOPE HETEROGENEITY...
Persistent link: https://www.econbiz.de/10012690973
-- IV. ANALYTICAL FRAMEWORK -- V. ESTIMATION RESULTS -- VI. DISCUSSION -- VII. CONCLUSION -- EXPERIENCES OF OTHER COUNTRIES …
Persistent link: https://www.econbiz.de/10012691183
The significant real exchange rate appreciation in Armenia and Georgia since 2003, coupled with persistent current account deficits, raises the question of whether real exchange rates have become overvalued. This paper seeks to identify possible exchange rate misalignment by applying the...
Persistent link: https://www.econbiz.de/10012677593
This paper examines the impact of Dollar exchange rate volatility on firm productivity in Emerging Markets economies (EMs). Using firm level data covering 16 EMs over the period 1998 -2019, the paper shows that dollar exchange rate volatility reduces firm productivity growth. Exploring channels,...
Persistent link: https://www.econbiz.de/10015059411
We show the importance of a dynamic aggregation bias in accounting for the PPP puzzle. We prove that established time-series and panel methods substantially exaggerate the persistence of real exchange rates because of heterogeneity in the dynamics of disaggregated relative prices. When...
Persistent link: https://www.econbiz.de/10005248142
We develop a theory-based model of equilibrium exchange rates incorporating factors that have been found to matter empirically. The model provides insights into how variables should be measured and what are appropriate cross-country restrictions. We estimate this model using a panel of 12...
Persistent link: https://www.econbiz.de/10005826165
-sample results, these largely reflect finite-sample estimation biases. Adjusting for these biases, there is little evidence of …
Persistent link: https://www.econbiz.de/10005826261
In this paper we extend the BEER (Behavioral Equilibrium Exchange Rate) approach which identifies an estimated equilibrium relationship between the real exchange rate and economic fundamentals. Here the economic fundamentals are decomposed using Johansen cointegration methods into transitory and...
Persistent link: https://www.econbiz.de/10005769018
we show that, if the true process of UIP deviations were of the nonlinear form we consider, estimation of conventional …
Persistent link: https://www.econbiz.de/10005604790