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Incorporation of Fixed-Flexible Exchange Rates in Econometric Trade Models: A Grafted Polynomial Approach

Author

Listed:
  • Liu, Zong-Shin
  • Devadoss, S.
  • Meyers, William H.

Abstract

Endogenizing the exchange rate in trade models over the period of fixed and flexible exchange rate systems poses an econometric problem in the estimation because of the fixity of the exchange rate under the fixed exchange rate system. An econometric technique, the grafted polynomial approach, is used to solve this problem.

Suggested Citation

  • Liu, Zong-Shin & Devadoss, S. & Meyers, William H., 1986. "Incorporation of Fixed-Flexible Exchange Rates in Econometric Trade Models: A Grafted Polynomial Approach," 1986 Annual Meeting, July 27-30, Reno, Nevada 278484, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278484
    DOI: 10.22004/ag.econ.278484
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    File URL: https://ageconsearch.umn.edu/record/278484/files/aaea-1986-166.pdf
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    References listed on IDEAS

    as
    1. Frenkel, Jacob A, 1976. " A Monetary Approach to the Exchange Rate: Doctrinal Aspects and Empirical Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 200-224.
    2. Fuller, Wayne A., 1969. "Grafted Polynomials As Approximating Functions," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 13(1), pages 1-12, June.
    3. Wayne A. Fuller, 1969. "Grafted Polynomials As Approximating Functions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 13(1), pages 35-46, June.
    4. G. Edward Schuh, 1974. "The Exchange Rate and U. S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 1-13.
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    Cited by:

    1. Liu, Zong-Shin, 1989. "Monetary policy, exchange rate, and effects on US wheat trade and domestic market in an imperfect competition framework," ISU General Staff Papers 1989010108000010216, Iowa State University, Department of Economics.

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