Discrepancies between Purchasing Power Parities and Exchange Rates under the Law of One Price: A Puzzle (partly) Explained?
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More about this item
Keywords
Purchasing Power Parity; exchange rate; PPP/ER discrepancy; Law of One Price; Balassa-Samuelson Effect; trade integration; computable general equilibrium; cross-country systems of demand functions; Almost Ideal Demand System; tradable goods; non-tradable goods;All these keywords.
JEL classification:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F31 - International Economics - - International Finance - - - Foreign Exchange
- O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
NEP fields
This paper has been announced in the following NEP Reports:- NEP-OPM-2010-11-13 (Open Economy Macroeconomics)
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