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Trading Costs for Goods and PPP. A Nonlinear Alternative for Real Exchange rate Dynamics

Author

Listed:
  • Bec, F.
  • Ben Salem, M.

Abstract

The high persistence of the PPP deviations is well documented in empirical work about real exchange rates. Our paper explores the possibility that, in presence of e.g. shipping costs, a nonlinear representation is more relevant for the real exchange rate.

Suggested Citation

  • Bec, F. & Ben Salem, M., 1998. "Trading Costs for Goods and PPP. A Nonlinear Alternative for Real Exchange rate Dynamics," Papers 9832, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
    • Handle: RePEc:fth:pnegmi:9832
    as

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    Keywords

    EXCHANGE RATE U.F.R. de science economiques; gestion; mathematiques et informatique; 200; avenue de la Republique 9 2001 Nanterre CEDEX. 20p.;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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