This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based Stabilizations

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Ariel T. Burstein (Northwestern University)
Joao C. Neves (Portuguese Catholic university)
Sergio Rebelo (Northwestern University, NBER and CEPR)

Additional information is available for the following registered author(s):

Abstract

This paper studies the role played by the distribution sector in shaping the behavior of the real exchange rate during exchange-rate-based stabilizations. We use data for the U.S. and Argentina to document the importance of distribution margins in retail prices and disaggregated price data to study price dynamics in the aftermath of Argentina's 1991 Convertibility plan. Distribution services require local labor and land so they drive a natural wedge between retail prices in different countries. We study in detail the impact of introducing a distribution sector in an otherwise standard model of exchange-rate-based stabilizations. We show that this simple extension improves dramatically the ability of the model to rationalize observed real exchange rate dynamics.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://rcer.econ.rochester.edu/RCERPAPERS/rcer_473.pdf
File Format: application/pdf
File Function: full text
Download Restriction: None

Publisher Info
Paper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 473.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 51 pages
Date of creation: May 2000
Date of revision:
Handle: RePEc:roc:rocher:473

Contact details of provider:
Postal: UNIVERSITY OF ROCHESTER, CENTER FOR ECONOMIC RESEARCH, DEPARTMENT OF ECONOMICS, HARKNESS 231 ROCHESTER NEW YORK 14627 U.S.A.

For technical questions regarding this item, or to correct its listing, contact: (Terry Fisher).

Related research
Keywords: Real Exchange Rate Distribution Inflation Stabilization Fixed Exchange Rates

Other versions of this item:

Find related papers by JEL classification:
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. Top 1‰ items by number of citations weighted by simple impact factors and discounted by age
  2. Top 1‰ items by number of citations weighted by recursive impact factors and discounted by age
Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.
Statistics
Access and download statistics

Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.

This page was last updated on 2008-11-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.