IDEAS home Printed from https://ideas.repec.org/p/ham/qmwops/20306.html
   My bibliography  Save this paper

Bilateral Equilibrium Exchange Rates of the EU Accession Countries against the Euro

Author

Listed:
  • Jörg Rahn

Abstract

In this paper we apply two different concepts (BEER and PEER) to calculate real equilibrium exchange rates for fiveEast and Central European EU accession countries. From the results bilateral nominal equilibrium exchange rates againstthe euro are obtained through an algebraic transformation. Furthermore, panel cointegration techniques are used to checkthe adequacy of the empirical model. The results indicate a substantial overvaluation of the real exchange rate inseveral EU accession countries. The magnitude of overvaluation turns out to be even higher when the exchange rate isexpressed in nominal terms against the euro.

Suggested Citation

  • Jörg Rahn, 2003. "Bilateral Equilibrium Exchange Rates of the EU Accession Countries against the Euro," Quantitative Macroeconomics Working Papers 20306, Hamburg University, Department of Economics.
    • Handle: RePEc:ham:qmwops:20306
    as

    Download full text from publisher

    File URL: http://gulliver.econ.uni-hamburg.de/IWWT/homepage/qmwps/qm603.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Real Exchange Rates; Equilibrium Exchange Rates; Transition Economies; Panel Cointegration;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ham:qmwops:20306. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/imhamde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.