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theory-consistent aggregation leads to unbiased estimates when prices are set in an international currency as postulated by …
Persistent link: https://www.econbiz.de/10012000121
This paper provides an estimation of the reaction of firm-level exports consecutive to real exchange rate movements … in particular information about firms' productivity and export performance. Our results show that while the average …
Persistent link: https://www.econbiz.de/10012927638
We develop a quantitative theoretical model of firm dynamics to analyze key determinants of the elasticity of exports with respect to the exchange rate. The model incorporates mechanisms that determine the firms? capacity to react when the profitability of exports change due to fluctuations in...
Persistent link: https://www.econbiz.de/10012166285
Building on a heterogeneous-firm model à la Melitz (2003), we propose a theory of intermediaries in international trade … result, validated on Italian firm-level trade data, is consistent with productivity sorting in the export mode and with the … intermediary export flows to a given destination react to exchange rate movements along the extensive margin of adjustment …
Persistent link: https://www.econbiz.de/10011674380
In this paper we analyze the impact of exchange rate uncertainty on export flows among a panel of 27 countries …, involving the flexibility or rigidities of the export adjustment arising exchange rate uncertainty. …
Persistent link: https://www.econbiz.de/10012405919
In this companion paper to Broll and Mukherjee (2017), we empirically analyse how exchange rate volatilities affect firms optimal production and exporting decisions. The firms elasticity of risk aversion determines the direction of the impact of exchange rate risk on exports. Based on a flexible...
Persistent link: https://www.econbiz.de/10011638802
Over the last decade foreign bond portfolio positions in US dollar assets have risen above the reciprocal US investor positions in foreign currencies. In periods of increased economic uncertainty, institutional investors hedge their international bond positions, which creates a net hedging...
Persistent link: https://www.econbiz.de/10013440410
Over the last decade foreign bond portfolio positions in US dollar assets have risen above the reciprocal US investor positions in foreign currencies. In periods of increased economic uncertainty, institutional investors hedge their international bond positions, which creates a net hedging...
Persistent link: https://www.econbiz.de/10014236684
analysis involves estimating the effects of cross-country differences in exchange rate regime on export and import elasticities …-country variation in U.S. export elasticities with respect to the real exchange rate and foreign GDPs is primarily attributable to the … cross- country variation in bilateral exchange rate regime-related risk. The empirical results showed that U.S. export …
Persistent link: https://www.econbiz.de/10014074133
Exchange rate volatility falls after a trade deal, driven by a decline in the systematic component of risk. The average trade deal increases trade by 50 percent over five years, reducing systematic risk by a third of a standard deviation across countries. We examine this connection in an...
Persistent link: https://www.econbiz.de/10013249476