Estimating the Accounting Price of Foreign Exchange: An Input-Output Approach

Elio Londero (eliolondero@hotmail.com)

MPRA Paper from University Library of Munich, Germany

Abstract: When adjustments in the foreign exchange market involve changes in the production of marginally traded goods, the traditional formula for calculating the accounting (shadow) price of foreign exchange assumes that domestic prices and marginal costs at efficiency prices for those goods are equal. In this paper a method is proposed for estimating an accounting price ratio of foreign exchange in a partial equilibrium framework, abandoning that assumption. For that purpose, input-output techniques are used, so as to take into account the effects of changes in the production of traded goods.

Keywords: cost-benefit analysis; shadow prices; accounting prices; input-output (search for similar items in EconPapers)
JEL-codes: D57 D61 (search for similar items in EconPapers)
Date: 1994, Revised 1994
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Economic Systems Research 4.6(1994): pp. 415-434

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/111727/1/MPRA_paper_111727.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111727

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).