Arbeitspapier
Endogenous trade, nontraded goods and real exchange rate variations
This paper evaluates whether a macroeconomic trade model, where the decision of trade and the Balassa-Samuelson effect are endogenous, can explain recent empirical facts about the importance of nontraded goods prices in real exchange rate variations better than a standard Balassa- Samuelson model, where nontraded goods are exogenously determined. The model is modified and calibrated to an asymmetric equilibrium that allows the steady state of the model to match some of the US-Mexico relationships quite well. The results suggest an importance of nontraded goods in real exchange rate volatility closer to the empirical evidence. In addition, the model replicates the findings that nontraded prices exhibit higher volatility than the real exchange rate and that these prices are negatively correlated with traded goods prices.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2015-07
- Klassifikation
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Foreign Exchange
Open Economy Macroeconomics
- Thema
-
Real Exchange Rate
Endogenous Trade
Firm Heterogeneity
Firm Dynamics
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hernández, Marco A.
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Hernández, Marco A.
- Banco de México
Entstanden
- 2015
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