Showing 1 - 10 of 92
We investigate the relation between foreign exchange (FX) order flow and the forward bias. We outline a decomposition of the forward bias according to which a negative correlation between interest rate differentials and order flow creates a time-varying risk premium consistent with that bias....
Persistent link: https://www.econbiz.de/10011396784
We gauge the de-facto capital account openness of the Chinese and Indian economies by testing the law of one price on the basis of onshore and offshore price gaps for three key financial instruments. Generally, the three measures show both economies becoming more financially open over time. Over...
Persistent link: https://www.econbiz.de/10010402814
a conventional monetary policy shock but depreciates to a central bank information shock. A threshold vector …
Persistent link: https://www.econbiz.de/10015053521
We study the impact of loss-aversion and the threat of catastrophic damages, which we jointly call threshold concerns …, on international environmental agreements. We aim to understand whether a threshold for dangerous climate change is as an …), or low damages (gain domain). Under symmetry, that is when countries display identical degrees of threshold concern, we …
Persistent link: https://www.econbiz.de/10011457579
Estimated Ricardian models have been criticized because they rely on mean temperatures and do not explicitly include extreme temperatures. This paper uses a cross sectional approach to compare a standard quadratic Ricardian model of mean temperature with a fully flexible daily temperature bin...
Persistent link: https://www.econbiz.de/10011714958
Persistent link: https://www.econbiz.de/10008668600
This paper sheds light on the influence of exchange rate volatility on foreign direct investment (FDI), both at the theoretical and the empirical level. The novelty of the empirical analysis, which is based on a panel of 27 OECD countries over the period 1982-2002, is to provide evidence of a...
Persistent link: https://www.econbiz.de/10005858054
We study high-frequency exchange rate movements over the sample 1993–2006. We document that the (Swiss) franc, euro, Japanese yen and the pound tend to appreciate against the U.S. dollar when (a) S&P has negative returns; (b) U.S. bond prices increase; and (c) when currency markets become more...
Persistent link: https://www.econbiz.de/10005858064
I derive a model-based equation relating pass-through to buyer size and estimate it on the micro transaction level data for Colombia. I find that after an exchange rate shock, sellers connected to larger buyers face more moderate changes in their prices in the seller currency (i.e., lower...
Persistent link: https://www.econbiz.de/10015410666
Exchange Rate Pass-Through (ERPT), commonly defined as the extent to which exchange rate changes are reflected in the price levels of an economy, has important implications in a number of policy-relevant areas. Despite this, estimates of ERPT in the Maltese economy are scarce and do not take...
Persistent link: https://www.econbiz.de/10012604346