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Fluctuaciones del Tipo de Cambio Real y Transabilidad de Bienes en el Comercio Bilateral Chile- Estados Unidos

Economic Analysis Review

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Field Value
 
Title Fluctuaciones del Tipo de Cambio Real y Transabilidad de Bienes en el Comercio Bilateral Chile- Estados Unidos
 
Creator Sanger T., Andres
 
Subject Real exchange rate, Law of One Price, tradability of goods, transaction costs, real business cycles.
 
Description Trade data shows that real exchange rate fluctuates more than other variables such as consumption and GDP, and also presents significant deviations from the Law of One Price. In light of these facts, this paper develops and estimates a non-monetary DSGE model under financial autarky for the international trade of goods and services between Chile and the U.S. In this context, the higher volatility of the real exchange rate is explained by the existence of transaction costs and varying degrees of imperfect substitution in consumption between home and foreign goods which endogenously induce a home bias effect. The results reveal that the estimated transaction costs and the asymmetric home bias effect content in the data would be responsible for the low correlation between consumption in both countries and the higher real exchange rate fluctuations. Finally, the model is able to replicate much of the stylized facts observed in the data, but fails to address the Backus-Smith puzzle.
 
Publisher Universidad Alberto Hurtado - Facultad de Economía y Negocios
 
Contributor Universidad Alberto Hurtado
 
Date 2011-12-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://www.rae-ear.org/index.php/rae/article/view/345
 
Source Revista de Análisis Económico - Economic Analysis Review; Vol 26, No 2 (2011); 3-37
Revista de Análisis Económico – Economic Analysis Review; Vol 26, No 2 (2011); 3-37
0718-8870
0716-5927
 
Language eng
 
Relation http://www.rae-ear.org/index.php/rae/article/view/345/514