Truths and myths about RMB misalignment: A meta-analysis

Yin-Wong Cheung and Shi He

No 3/2019, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: We conduct a meta-regression analysis of 69 studies that generated 937 renminbi (RMB) misalignment estimates. The Bayesian Model Averaging (BMA) approach is adopted to allow for model selection and sampling uncertainties in assessing effects of study characteristics on these RMB misalignment estimates. Misalignment estimates are found to be influenced by the eight selected study characteristic types in our median probability model. The RMB misalignment estimate from models with various hypothetical combinations of study characteristics, however, is mostly insignificantly different from zero. It is also shown that the set of significant study characteristics is sensitive to the use of the least squares estimation method and the choice of benchmark study characteristics.

Keywords: Bayesian Model Averaging (BMA); clustering effects; median probability model specification; RMB undervaluation; study characteristics (search for similar items in EconPapers)
JEL-codes: C83 F31 F41 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Truths and Myths About RMB Misalignment: A Meta-analysis (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2019_003

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