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Macro-Hysteresis Test for Brazilian Exports of Manufactured Products: A threshold Panel Approach

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  • Sérgio Kannebley Júnior
  • João Paulo Martins Baroni
  • Diogo de Prince

Abstract

type="main"> This study tests for macro-hysteresis in Brazilian exports of manufactured products using a panel model with threshold parameters according to Hansen. To test hysteresis, the threshold variables are built based on studies by Parslei and Wei, and Penkova. There is evidence of asymmetrical responses, with more pronounced increases in the price elasticity of demand during periods of high depreciation of the exchange rate compared with periods of more pronounced currency appreciation. We also estimate the relative price intervals that correspond to the inaction band.

Suggested Citation

  • Sérgio Kannebley Júnior & João Paulo Martins Baroni & Diogo de Prince, 2015. "Macro-Hysteresis Test for Brazilian Exports of Manufactured Products: A threshold Panel Approach," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 606-637, November.
    • Handle: RePEc:bla:metroe:v:66:y:2015:i:4:p:606-637
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