Disaggregate Real Exchange Rate Behaviour

Giorgio Fazio, Peter McAdam () and Ronald MacDonald

Open Economies Review, 2007, vol. 18, issue 4, 389-404

Abstract: In this paper, we re-examine the “PPP Puzzle” using sectoral disaggregated data. Specifically, we first analyse the mean reversion speeds of real exchange rates for a number of different sectors in 11 industrial economies and then focus on relating these rates to variables identified in the literature as key determinants of CPI-based real exchange rates, namely: the trade balance, productivity and the mark up. In particular, we seek to understand to what extent the relationships existing at the aggregate level are borne out at the disaggregate level. We believe that this analysis can help shed light on the PPP puzzle. Copyright Springer Science+Business Media, LLC 2007

Keywords: Real exchange rates; Sectoral prices; Panel data methods; F31; F41; C33 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11079-007-9055-3 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Disaggregate Real Exchange Rate Behaviour (2007)
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:kap:openec:v:18:y:2007:i:4:p:389-404

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2

DOI: 10.1007/s11079-007-9055-3

Access Statistics for this article

Open Economies Review is currently edited by G.S. Tavlas

More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().