Back to Search
Start Over
Exchange rate pass-through to import prices in Europe: a panel cointegration approach.
- Source :
- Empirical Economics; Jul2021, Vol. 61 Issue 1, p61-100, 40p, 1 Color Photograph, 14 Charts, 4 Graphs
- Publication Year :
- 2021
-
Abstract
- This paper takes a panel cointegration approach to the estimation of short- and long-run exchange rate pass-through (ERPT) to import prices in the European countries. Although economic theory suggests a long-run relationship between import prices and exchange rate, in recent empirical studies its existence has either been overlooked or it has proven difficult to establish. Resorting to novel tests for panel cointegration, we find support for the equilibrium relationship hypothesis. Exchange rate pass-through elasticities, estimated by two different techniques for cointegrated panel regressions, give insight into the most recent development of the ERPT. [ABSTRACT FROM AUTHOR]
- Subjects :
- EXCHANGE rate pass-through
COINTEGRATION
IMPORTS
FOREIGN exchange rates
Subjects
Details
- Language :
- English
- ISSN :
- 03777332
- Volume :
- 61
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Empirical Economics
- Publication Type :
- Academic Journal
- Accession number :
- 150973119
- Full Text :
- https://doi.org/10.1007/s00181-020-01858-8