Arbeitspapier
Pricing to Market, Staggered Contracts, and Real Exchange Rate Persistence
This paper offers an explanation for the persistence observed in real exchange rate movements. The model combines pricing to market behavior with sticky prices generated by staggered contracts. A translog preference structure is used to enhance both features. The paper finds that openness limits the degree of endogenous persistence. Nevertheless, the model under reasonable parameter values can replicate the serial correlation of real exchange rate data. Further, significant exchange rate volatility can be generated, and this is amplified by the presence of endogenous persistence.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 99-1
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Feenstra, Robert
Bergin, Paul
- Event
-
Veröffentlichung
- (who)
-
University of California, Department of Economics
- (where)
-
Davis, CA
- (when)
-
1999
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Feenstra, Robert
- Bergin, Paul
- University of California, Department of Economics
Time of origin
- 1999
Other Objects (12)
Staggered price contracts and inflation persistence: some general results
Staggered price contracts and inflation persistence : some general results
Foreign exchange dealer asset pricing
Modeling real exchange rate persistence in Chile
Persistence and nominal inertia in a generalized Taylor economy: how longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy : how longer contracts dominate shorter contracts
Persistence in the Cryptocurrency Market
Persistence in the cryptocurrency market
Persistence in the cryptocurrency market
Persistence in Turkish Real Exchange Rates: Panel Approaches
Pricing of cyber insurance contracts in a network model
Staggered price contracts and inflation persistence: some general results
Staggered price contracts and inflation persistence : some general results
Foreign exchange dealer asset pricing
Modeling real exchange rate persistence in Chile
Persistence and nominal inertia in a generalized Taylor economy: how longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy : how longer contracts dominate shorter contracts
Persistence in the Cryptocurrency Market
Persistence in the cryptocurrency market
Persistence in the cryptocurrency market
Persistence in Turkish Real Exchange Rates: Panel Approaches
Pricing of cyber insurance contracts in a network model
Staggered price contracts and inflation persistence: some general results
Staggered price contracts and inflation persistence : some general results
Foreign exchange dealer asset pricing
Modeling real exchange rate persistence in Chile
Persistence and nominal inertia in a generalized Taylor economy: how longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts
Persistence and nominal inertia in a generalized Taylor economy : how longer contracts dominate shorter contracts
Persistence in the Cryptocurrency Market
Persistence in the cryptocurrency market
Persistence in the cryptocurrency market
Persistence in Turkish Real Exchange Rates: Panel Approaches