EconPapers    
Economics at your fingertips  
 

A Darwinian Perspective on “Exchange Rate Undervaluation”

Qingyuan Du and Shang-Jin Wei

No 456, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper studies how status competition for marriage partners can generate surprising effects on the real exchange rate (RER). In theory, a rise in the sex ratio(increasing relative surplus of men) can generate a decline in the RER. The effect can be quantitatively large if the biological desire for a marriage partner is strong. We also provide within-the People’s Republic of China and cross country empirical evidence to support the theory. As an application, our cross-country estimation suggests that sex ratio as well as other factors in the existing literature can account for the recent evolution in Chinese RER almost completely.

Keywords: currency manipulation; equilibrium real exchange rate; surplus men (search for similar items in EconPapers)
JEL-codes: F31 F42 J10 J70 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2015-10-07
New Economics Papers: this item is included in nep-cna, nep-opm, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.adb.org/sites/default/files/publication/175011/ewp-456.pdf Full text (application/pdf)

Related works:
Journal Article: A Darwinian perspective on “exchange rate undervaluation” (2016) Downloads
Working Paper: A Darwinian Perspective on "Exchange Rate Undervaluation" (2012) Downloads
Working Paper: A Darwinian Perspective on "Exchange Rate Undervaluation" (2011) Downloads
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:ris:adbewp:0456

Access Statistics for this paper

More papers in ADB Economics Working Paper Series from Asian Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Gemma Estrada ().

 
Page updated 2021-10-14
Handle: RePEc:ris:adbewp:0456