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Alternative Measures of Effective Exchange Rates for Agricultural Trade

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  • Dutton, John
  • Grennes, Thomas

Abstract

Alternative measures of multilateral exchange-rate changes appropriate for agricultural trade are analyzed. The economic theory of index numbers was consulted in analyzing published exchange-rate indices and in constructing new indices. Comparisons among indices were made for the period 1970-85, and differences were found to be significant. Results were particularly sensitive to the use of global rather than bilateral trade weights used in the U.S. Department of Agriculture index. The relative importance of alternative exchange-rate measures and trade elasticities is illustrated in terms of an agricultural trade model. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Dutton, John & Grennes, Thomas, 1987. "Alternative Measures of Effective Exchange Rates for Agricultural Trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(4), pages 427-442.
    • Handle: RePEc:oup:erevae:v:14:y:1987:i:4:p:427-42
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    Cited by:

    1. Dushmanitch, V. Y. & Darroch, M. A. G., 1991. "The Impacts Of Monetary Policy On The Maize And Beef Sectors Of South Africa I: Theoretical Foundations And Model Specification," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(3), September.

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