|
|
|
|
||||
|
||||
Exchange Rate Misalignment Estimates - Sources of DifferencesYin-Wong CheungCity University of Hong Kong - Department of Economics & Finance; University of California at Santa Cruz - Department of Economics Eiji FujiiKwansei Gakuin University - School of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) August 31, 2011 CESifo Working Paper Series No. 3555 Abstract: We study the differences of currency misalignment estimates obtained from alternative datasets derived from two International Comparison Program (ICP) surveys. A decomposition exercise reveals that the year 2005 misalignment estimates are substantially affected by the ICP price revision. Further, we find that differences in misalignment estimates are systematically affected by a country’s participation status in the ICP survey and its data quality – a finding that casts doubt on the economic and policy relevance of these misalignment estimates. The patterns of changes in the estimated degree of misalignment across individual countries, as illustrated by the BRIC economies, are quite variable.
Number of Pages in PDF File: 50 Keywords: Penn effect eegression, data revision, PPP-based data, measurement factors, economic factors JEL Classification: F310, F410, E010, C310 working papers seriesDate posted: September 1, 2011Suggested CitationContact Information
|
|
|||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo3 in 0.890 seconds
