On the Relation between Currency Depreciation and Domestic Consumption - La relazione tra deprezzamento della valuta e consumi interni

Mohsen Bahmani-Oskooee and Massomeh Hajilee
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Massomeh Hajilee: University of Huston-Victoria, School of Business Administration, Postal: 3007 N. Ben Wilson, Victoria, Texas 77901 - USA, http://www.uhv.edu/bus/

Economia Internazionale / International Economics, 2012, vol. 65, issue 4, 503-512

Abstract: In a 1952 article Alexander argued that currency devaluation could lead to a decline in domestic consumption by redistributing income from workers with high MPC to producers with low MPC. In this paper we include the exchange rate as another determinant of domestic consumption in addition to income and interest rate. We estimate the model using time-series data and the bounds testing method for each of the 50 countries in our sample. In most countries, the results support Alexander’s argument in the short run but not in the long run. - In un saggio del 1952 Alexander ipotizzava che la svalutazione della moneta avrebbe potuto portare ad una diminuzione dei consumi interni tramite la redistribuzione del reddito dai lavoratori con alta propensione marginale al consumo ai produttori con bassa propensione marginale al consumo. In questo studio includiamo quale determinante del consumo interno il tasso di cambio in aggiunta al reddito ed al tasso di interesse. Viene effettuata una stima su un campione di 50 paesi utilizzando dati time-series ed il metodo bound testing. Per la maggior parte dei paesi analizzati i risultati avvalorano la tesi di Alexander nel breve periodo ma non nel lungo periodo.

Keywords: Bounds Testing; Devaluation; Domestic Consumption (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2012
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