EconStor >
Rheinische Friedrich-Wilhelms-Universität Bonn >
Bonn Graduate School of Economics (BGSE), Universität Bonn >
Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/22973
  
Title:Prominent Numbers and Ratios in Exchange Rate Determination: Field and Laboratory Evidence PDF Logo
Authors:von Hagen, Jürgen
Kube, Sebastian
Kaiser, Johannes
Selten, Reinhard
Pope, Robin
Issue Date:2006
Series/Report no.:Bonn econ discussion papers 2006,29
Abstract:In the decision-making process, there is a stage when choosers evaluate alternatives. Evaluation is complex especially when it involves the future exchange rate. In the complexity of predicting the future exchange rate, choosers may use prominent numbers and ratios. We furnish field and experimental evidence of major effects on exchange rate determination from prominent numbers and ratios that constitute nominal equalities and historical benchmarks. Theorizing and estimation of exchange rates can be enhanced via SKAT, the Stages of Knowledge Ahead Theory that allows prominent numbers and prominent ratios to be taken into account consistently in constructing decision models.
Subjects:nominalism
money illusion
unpredictability
experiment
SKAT the Stages of Knowledge Ahead Theory
prominent numbers
prominent ratios
JEL:D80
D81
F31
F33
Document Type:Working Paper
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

Files in This Item:
File Description SizeFormat
bgse29_2006.pdf903.48 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/22973

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.