Gateway to Think Tanks
来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w27420 |
来源ID | Working Paper 27420 |
A Behavioral Explanation for the Puzzling Persistence of the Aggregate Real Exchange Rate | |
Mario J. Crucini; Mototsugu Shintani; Takayuki Tsuruga | |
发表日期 | 2020-06-29 |
出版年 | 2020 |
语种 | 英语 |
摘要 | At the aggregate level, the evidence that deviations from purchasing power parity (PPP) are too persistent to be explained solely by nominal rigidities has long been a puzzle (Rogoff, 1996). Another puzzle from the micro price evidence of the law of one price (LOP), which is the basic building block of PPP, is that LOP deviations are less persistent than PPP deviations. To reconcile the empirical evidence, we adapt the model of behavioral inattention in Gabaix (2014, 2020) to a simple two-country sticky-price model. We propose a simple test of behavioral inattention and find strong evidence in its favor using micro price data from US and Canadian cities. Calibrating behavioral inattention with our estimates, we show that our model reconciles the two puzzles relating to the PPP and LOP. First, the PPP deviations are more than twice as persistent as PPP deviations explained only by sticky prices. Second, the LOP deviations decrease to less than two-thirds of the PPP deviations in the degree of persistence. |
主题 | Microeconomics ; Market Structure and Distribution ; Macroeconomics ; Business Cycles ; International Economics ; International Finance |
URL | https://www.nber.org/papers/w27420 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/585093 |
推荐引用方式 GB/T 7714 | Mario J. Crucini,Mototsugu Shintani,Takayuki Tsuruga. A Behavioral Explanation for the Puzzling Persistence of the Aggregate Real Exchange Rate. 2020. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w27420.pdf(765KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。