A Darwinian Perspective on “Exchange Rate Undervaluation”
Qingyuan Du and
No 456, ADB Economics Working Paper Series from Asian Development Bank
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
New Economics Papers: this item is included in nep-cna, nep-opm, nep-sea and nep-tra
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Journal Article: A Darwinian perspective on “exchange rate undervaluation” (2016)
Working Paper: A Darwinian Perspective on "Exchange Rate Undervaluation" (2012)
Working Paper: A Darwinian Perspective on "Exchange Rate Undervaluation" (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0456
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