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Tests of microeconomic foundations of Asian common currency areas

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  • Swofford, James L.

Abstract

The formation of the euro bloc sparked renewed interest in other potential common currency areas. Swofford [Swofford, J. L. (2000). Microeconomic foundations of an optimal currency area. Review of Financial Economics, 9, 121-128] set forth some microeconomic foundations for a common currency area. In this paper, some results from tests of these microeconomic foundations for various hypothesized Asian common currency areas are presented. These results can be viewed as broadly favorable for the formation of some Asian common currency areas.

Suggested Citation

  • Swofford, James L., 2008. "Tests of microeconomic foundations of Asian common currency areas," Journal of Asian Economics, Elsevier, vol. 19(3), pages 254-258, June.
    • Handle: RePEc:eee:asieco:v:19:y:2008:i:3:p:254-258
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    References listed on IDEAS

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    1. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    2. Swofford, James L., 2000. "Microeconomic foundations of an optimal currency area," Review of Financial Economics, Elsevier, vol. 9(2), pages 121-128, December.
    3. Swofford, James L & Whitney, Gerald A, 1990. "Bounding an Economic Monetary Aggregate under Nonhomothetic Preferences," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(1), pages 137-141, January.
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    7. James Swofford, 2005. "Tests of microeconomic foundations of a North American common currency area," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 420-429, May.
    8. James L. Swofford, 2005. "Tests of microeconomic foundations of a North American common currency area," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 420-429, May.
    9. Andrew K. Rose & Eric van Wincoop, 2001. "National Money as a Barrier to International Trade: The Real Case for Currency Union," American Economic Review, American Economic Association, vol. 91(2), pages 386-390, May.
    10. William A. Barnett, 2003. "Aggregation-Theoretic Monetary Aggregation over the Euro Area, when Countries are Heterogeneous," Macroeconomics 0309018, University Library of Munich, Germany.
    11. Swofford, James L & Whitney, Gerald A, 1987. "Nonparametric Tests of Utility Maximization and Weak Separability for Consumption, Leisure and Money," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 458-464, August.
    12. Patterson, Kerry D, 1991. "A Non-parametric Analysis of Personal Sector Decisions on Consumption, Liquid Assets and Leisure," Economic Journal, Royal Economic Society, vol. 101(408), pages 1103-1116, September.
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    1. Binner, Jane & Chen, Shu-Heng & Lai, Ke-Hung & Mullineux, Andrew & Swofford, James L., 2011. "Do the ASEAN countries and Taiwan form a common currency area?," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1429-1435.
    2. Mustafa Caglayan & Omar S. Dahi & Firat Demir, 2013. "Trade Flows, Exchange Rate Uncertainty, and Financial Depth: Evidence from 28 Emerging Countries," Southern Economic Journal, John Wiley & Sons, vol. 79(4), pages 905-927, April.
    3. Mishra, Ritesh Kumar & Sharma, Chandan, 2010. "Real exchange rate behavior and optimum currency area in East Asia: Evidence from Generalized Purchasing Power Parity," International Review of Financial Analysis, Elsevier, vol. 19(3), pages 205-213, June.
    4. Jamshaid ur Rehman & Tasneem Zafar & Shabbir Ahmad & Aftab Anwar, 2022. "In Search of Common Currency Anchor for ASEAN+3+3 Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 237-264, September.

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