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We study the behavior of real exchange rates in a two-country dynamic equilibrium model. In this model, consumers can only consume domestic goods but can invest costlessly in capital stocks of both countries. Nevertheless, transporting goods between the two countries is costly and, hence, the...
Persistent link: https://www.econbiz.de/10009440709
Persistent link: https://www.econbiz.de/10009440727
ante through detailed restatement procedures and estimation techniques.It was found that inflation has a serious impact on …
Persistent link: https://www.econbiz.de/10009465869
According to the Purchasing Power Parity {(PPP)} theory, real exchange rate fluctuations are mainly caused by … transitory shocks. The theory fits well one empirical feature of the data, namely the short-run volatility of real exchange rates …, the results show that the data are not inconsistent with the {PPP} theory, although we cannot provide conclusive evidence …
Persistent link: https://www.econbiz.de/10009475495
purchasing power parity are both substantial and persistent. Two explanations of these deviations have been advanced in the … literature. One emphasizes the role of changes in non-traded goods prices while the other views deviations from purchasing power … explanation of deviations from purchasing power parity — they may be necessary in order to facilitate the relative price changes …
Persistent link: https://www.econbiz.de/10009475591
rate model, namely: differences in the theoretical underpinnings; differences in the econometric estimation techniques; and …
Persistent link: https://www.econbiz.de/10009477512
as a long-run equilibrium condition. Further, breaks in the series are endogenously determined using a procedure based on … disturbances, are in the majority of cases inconsistent with PPP, even more so when breaks are incorporated: Argentina is the only …
Persistent link: https://www.econbiz.de/10009481424
This paper uses the industry of origin approach to analyze value added and labor productivity outcomes arising from progressive liberalization of government and from statutory board control of transport and communications in Singapore. The paper compares these outcomes with those from the...
Persistent link: https://www.econbiz.de/10009483233
This paper examines the long-run validity of purchasing power parity (PPP) for fourteen developing countries. The …
Persistent link: https://www.econbiz.de/10009441661
method enables us to resolve a longstanding issue as to the veracity of Purchasing Power Parity (PPP). This paper presents …
Persistent link: https://www.econbiz.de/10009441758