04961oam 22009614 450 991078823490332120230721045642.01-4623-9716-61-4527-0166-01-4518-7011-697866128410401-282-84104-1(CKB)3170000000055058(EBL)1607924(SSID)ssj0000943982(PQKBManifestationID)11612510(PQKBTitleCode)TC0000943982(PQKBWorkID)10978596(PQKB)11453136(OCoLC)762080664(MiAaPQ)EBC1607924(IMF)WPIEE2008153(EXLCZ)99317000000005505820020129d2008 uf 0engur|n|---|||||txtccrBivariate Assessments of Real Exchange Rates Using PPP Data /Juan ZalduendoWashington, D.C. :International Monetary Fund,2008.1 online resource (28 p.)IMF Working PapersIMF working paper ;WP/08/153Description based upon print version of record.1-4519-1464-4 Includes bibliographical references.Contents; I. Introduction; II. An Analytical Framework of the Real Exchange Rate; Box 1. The LOOP and the Purchasing Power Parity-Origins and Concepts; III. How are Bivariate Equilibrium Real Exchange Rates Estimated?; A. The International Comparison of Prices Dataset; B. Estimation Methodology and Underlying Assumptions; Figures; 1. Relative Price Levels and Income per Capita (1990 ICP Dataset); IV. Empirical Evidence; A. Cross-Section Evidence; 2. Balassa-Samuelson Relationship-Income and Regional Groups; Tables; 1. Estimation Results; 2. Panel Estimation Results3. Average Over-valuation (+) and Under-valuation (-) Results-2006B. Time-Series Evidence; 4. Closing Gap between Actual and Balassa-Samuelson Exchange Rate; C. Discussion; V. Conclusions; Appendix I. List of Countries Included in Econometric Estimations; Appendix II. The Low-Income Country Puzzle; Appendix Table 1. Estimation Results for Sub-samples of Low-Income Countries; ReferencesThis paper focuses on assessments of real exchange rates using PPP data and examines their limitations when these are based exclusively on bivariate estimations. It begins by presenting an analytical framework of the real exchange rate that shows that these estimations make many restrictive assumptions. In turn, the empirical evidence presented shows that the estimates are not robust to changes in sample, such as those that arise from differences in incomes per capita. The conclusion is that the bivariate assessment of real exchange rates do not control for the heterogeneity that exists across countries, thus limiting their usefulness. This critique of bivariate estimations does not apply however to multivariate approaches such as utilized by CGER.IMF Working Papers; Working Paper ;No. 2008/153Foreign exchange ratesEconometric modelsPurchasing power parityEconometric modelsForeign ExchangeimfMacroeconomicsimfPublic FinanceimfAggregate Factor Income DistributionimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfCurrencyimfForeign exchangeimfPublic finance & taxationimfReal exchange ratesimfIncomeimfPurchasing power parityimfExchange ratesimfPublic investment and public-private partnerships (PPP)imfPublic-private sector cooperationimfUnited StatesimfForeign exchange ratesEconometric models.Purchasing power parityEconometric models.Foreign ExchangeMacroeconomicsPublic FinanceAggregate Factor Income DistributionNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockCurrencyForeign exchangePublic finance & taxationReal exchange ratesIncomePurchasing power parityExchange ratesPublic investment and public-private partnerships (PPP)Public-private sector cooperation332.456Zalduendo Juan1464148DcWaIMFBOOK9910788234903321Bivariate Assessments of Real Exchange Rates Using PPP Data3704178UNINA