Price of recreational products and the exchange rate: an empirical investigation on US data

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Price of recreational products and the exchange rate: an empirical investigation on US data

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Cellini, Roberto
Paolino, Alessandro

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Roberto Cellini

Abstract

The paper analyses the cointegration relationships and the causal links between the exchange rate of the US Dollar, on the one side, and different price indices of US products on the other side. Data are of monthly frequency and cover a period of two or three decades. We show that the exchange rate cointegrate with the Consumer Price Index and with the prices indices of several agricultural, manufactured and service goods; moreover a one-direction causal link is present, running from price to exchange rate. On the opposite, cointegrating relationships between exchange rate and price indices do not exist in the case of recreational products with “cultural” content. Tentative theoretical explanations are proposed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5194.

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Date of creation: Oct 2007
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Handle: RePEc:pra:mprapa:5194

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Find related papers by JEL classification:
Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-10-13 (All new papers)
NEP-IFN-2007-10-13 (International Finance)
NEP-MKT-2007-10-13 (Marketing)
NEP-TUR-2007-10-13 (Tourism Economics)

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