@techreport{Cheung2007Hoarding,
abstract = {Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlups wardrobe hypothesis and the related keeping up with the Joneses argument. It is conceived that, in addition to psychological reasons, holding a relatively high level of international reserves reduces the vulnerability to speculative attacks and promotes growth. A stylized model is constructed to illustrate this type of hoarding behavior. The relevance of the keeping up with the Joneses effect is examined using a few plausible empirical specifications and data from 10 East Asian economies. Panel-based regression results are suggestive of the presence of the Joneses effect; especially in the post-1997 crisis period. Individual economy estimation results, however, show that the Joneses effect varies across economies.},
address = {M\"{u}nchen},
author = {Yin-Wong Cheung and Xingwang Qian},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F3; F4; 330; W\"{a}hrungsreserven; Nachfrage; Konsuminterdependenz; Devisenspekulation; Wirtschaftswachstum; Sch\"{a}tzung; Welt; Ostasien},
language = {eng},
number = {2065},
publisher = {CESifo},
title = {Hoarding of international reserves: Mrs Machlup's wardrobe and the joneses},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/26110},
year = {2007}
}
