Measuring long-run equilibrium exchange rates using standardized products with different specifications

Laurenceson, James and Tang, Kam Ki (2010) Measuring long-run equilibrium exchange rates using standardized products with different specifications. Applied Economics Letters, 17 5: 473-476. doi:10.1080/13504850801964315

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads

Author Laurenceson, James
Tang, Kam Ki
Title Measuring long-run equilibrium exchange rates using standardized products with different specifications
Journal name Applied Economics Letters   Check publisher's open access policy
ISSN 1350-4851
1466-4291
Publication date 2010-03
Year available 2008
Sub-type Article (original research)
DOI 10.1080/13504850801964315
Volume 17
Issue 5
Start page 473
End page 476
Total pages 4
Place of publication London, U.K.
Publisher Routledge
Collection year 2009
Language eng
Subject 140210 International Economics and International Finance
919999 Economic Framework not elsewhere classified
C1
Abstract Purchasing Power Parity (PPP) is an appealing theory of the determination of long-run equilibrium exchange rates as it is founded on the intuitive proposition that opportunities for arbitrage will not go unexploited. However, in practice, measuring PPP exchange rates is hindered by difficulties in isolating the cost of tradeable inputs in the price of a reference product basket. This article proposes a method that can extract this component using price information embodied in slightly different specifications of otherwise identical, standardized products. The method is illustrated using two well-known information and telecommunication (ICT) products, and could readily be applied to a broader, more representative product basket. Copyright 2010 Taylor & Francis
Keyword Economic theory
Exchange rate
Information and communication technology
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes First Published on: 12 May 2008

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2010 Higher Education Research Data Collection
School of Economics Publications
 
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in Thomson Reuters Web of Science Article
Scopus Citation Count Cited 0 times in Scopus Article
Google Scholar Search Google Scholar
Created: Sun, 19 Apr 2009, 14:28:35 EST by Kaelene Matts on behalf of Faculty of Business, Economics & Law