05180oam 22010574 450 991096062370332120250426110108.0978661284104097814623971671462397166978145270166014527016609781451870114145187011697812828410481282841041(CKB)3170000000055058(EBL)1607924(SSID)ssj0000943982(PQKBManifestationID)11612510(PQKBTitleCode)TC0000943982(PQKBWorkID)10978596(PQKB)11453136(OCoLC)762080664(MiAaPQ)EBC1607924(IMF)WPIEE2008153(IMF)WPIEA2008153WPIEA2008153(EXLCZ)99317000000005505820020129d2008 uf 0engur|n|---|||||txtccrBivariate Assessments of Real Exchange Rates Using PPP Data /Juan Zalduendo1st ed.Washington, 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.9781451914641 1451914644 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 modelsAggregate Factor Income DistributionimfCurrencyimfExchange ratesimfForeign ExchangeimfForeign exchangeimfIncomeimfMacroeconomicsimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfPublic finance & taxationimfPublic FinanceimfPublic investment and public-private partnerships (PPP)imfPublic-private sector cooperationimfPurchasing power parityimfReal exchange ratesimfUnited StatesimfForeign exchange ratesEconometric models.Purchasing power parityEconometric models.Aggregate Factor Income DistributionCurrencyExchange ratesForeign ExchangeForeign exchangeIncomeMacroeconomicsNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockPublic finance & taxationPublic FinancePublic investment and public-private partnerships (PPP)Public-private sector cooperationPurchasing power parityReal exchange rates332.456Zalduendo Juan1812964DcWaIMFBOOK9910960623703321Bivariate Assessments of Real Exchange Rates Using PPP Data4372503UNINA