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The paper addresses the question what effects the enlargement of a monetary union will have on necessary structural reforms in the (low distortion) member countries and the (high distortion) candidate countries. While monetary union lowers reforms in the candidate countries, members of the...
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the transaction price and exposure to exchange rate fluctuations. We find that the choice of price and invoicing currency …-importer transactions, but also for aggregate variables such as the average price, the average choice of invoicing currency, and the … correlation between invoicing currency and the size of trade transactions. …
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the transaction price and exposure to exchange rate fluctuations. We find that the choice of price and invoicing currency …-importer transactions, but also for aggregate variables such as the average price, the average choice of invoicing currency, and the … correlation between invoicing currency and the size of trade transactions. …
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Gravity equations explaining foreign affiliates' sales are ad hoc and hence, estimated coeffcients are hard to interpret. We therefore provide the theoretical underpinnings of the gravity equation applied to the analysis of sales of foreign affiliates of multinational firms. We argue that the...
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