Bergin, Paul R.; Glick, Reuven; Wu, Jyh-Lin - In: The Review of Economics and Statistics 95 (2013) 3, pp. 798-812
relative prices in microeconomic data. Error correction model estimates indicate that a different mix of shocks drives …, we find that micro relative prices exhibit every bit as much persistence as aggregate real exchange rates. These results … challenge theories of real exchange rate persistence based on sticky prices and heterogeneity across goods. © 2013 The President …