A reply to “Estimating a bilateral J‐curve between the UK and the euro area: An asymmetric analysis”

Nektarios Michail

Manchester School, 2021, vol. 89, issue 6, 658-661

Abstract: In 2018, I published an article in this journal aiming to examine whether the UK could potentially benefit from the depreciation of the pound following the Brexit decision. During this year's issue, a study by Bahmani‐Oskooee and Karamelikli (2021) suggested that the findings of said article were based on sign misinterpretation. In this article, I explain that the misunderstanding that has arisen is due to an incorrect definition of a variable in the appendix. When the revised definition is taken into consideration, the conclusions reached still hold.

Date: 2021
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