The exchange rate, asymmetric shocks and asymmetric distributions

Filippo di Mauro () and Calin-Vlad Demian

No 1801, Working Paper Series from European Central Bank

Abstract: The elasticity of exports to exchange rate fluctuations has been the subject of a large literature without a clear consensus emerging. Using a novel sector level dataset based on firm level information, we show that exchange rate elasticities double in size when the country and sector specific firm productivity distribution is taken into account in empirical estimates. In addition, exports appear to be sensitive to appreciation episodes, but rather unaffected by depreciations. Finally, only rather large changes in the exchange rate appear to matter. JEL Classification: F14, F41, F31

Keywords: bilateral trade; exchange rate elasticity; productivity dispersion; TFP (search for similar items in EconPapers)
Date: 2015-06
New Economics Papers: this item is included in nep-bec, nep-int, nep-mon and nep-opm
Note: 437559
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The exchange rate, asymmetric shocks and asymmetric distributions (2018)
Journal Article: The exchange rate, asymmetric shocks and asymmetric distributions (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20151801

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