Putting currency misalignment into gravity: The currency union effect reconsidered

Arbeitspapier

Member countries of a currency union like the euro area have absorbed asymmetric shocks in ways that are inconsistent with a common nominal anchor. Based on a reformulation of the gravity model that allows for such bilateral misalignment, we disentangle the conventional microeconomic trade effect and macroeconomic trade effects deriving from bilateral misalignment within currency unions. Econometric estimation reveals that for the euro area the misalignment channel exerts a significant trade effect on bilateral exports. We retrieve country-specific estimates of the misalignment-induced effect on trade which demonstrate heterogeneous outlooks across countries for the costs and benefits from adopting the euro.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: University of Tübingen Working Papers in Economics and Finance ; No. 32

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade Policy; International Trade Organizations ; Economic Integration
• Thema: Euro ; gravity model ; exchange rates ; trade imbalances

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hogrefe, Jan ; Jung, Benjamin ; Kohler, Wilhelm K.
• Ereignis: Veröffentlichung
• (wer): University of Tübingen, Faculty of Economics and Social Sciences
• (wo): Tübingen
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/57881
• URN: urn:nbn:de:bsz:21-opus-61260
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ