Extensive and intensive margins and exchange rate regimes

Masashige Hamano and Pierre Picard

Canadian Journal of Economics, 2017, vol. 50, issue 3, 804-837

Abstract: This paper studies the costs and benefits of fixed and flexible exchange rate regimes in the presence of endogenous intensive and extensive margins of trade. The net benefit depends on the levels and volatilities of those margins as well as on their correlation with consumers preferences. A fixed exchange rate regime is preferred for sufficiently high labour supply elasticities and lower love for product diversity. Delays between entry and production make fixed exchange rate regimes less attractive.

JEL-codes: E22 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Extensive and intensive margins and exchange rate regimes (2017)
Working Paper: Extensive and intensive margins and exchange rate regimes (2017)
Working Paper: Extensive and intensive margins and the choice of exchange rate regimes (2013)
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