Equilibrium exchange rates in transition countries: Evidence from dynamic heterogenous panel models

Arbeitspapier

We use a dynamic heterogeneous panel model to estimate real equilibrium exchange rates for advanced transition countries.Our method is based on out-of-sample estimations from middle-income and high-income countries, and we use a pooled mean group estimator.We find that exchange rates have converged in recent years in five transition countries (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) with real equilibrium exchange rates expressed in the US dollars.However, we also find that the currencies of the transition countries studied are substantially overvalued if real effective exchange rates are used.

Object Details

• ISBN: 951-686-846-0
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 15/2002

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Foreign Exchange ; Socialist Systems and Transitional Economies: Performance and Prospects
• Subject: exchange rates ; transition economies ; dynamic heterogeneous panel estimations

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kim, Byung-Yeon ; Korhonen, Iikka
• Event: Veröffentlichung
• (who): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (where): Helsinki
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/212513
• Last update: 10.03.2025, 11:42 AM CET