Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61420
Year of Publication: 
2012
Series/Report no.: 
DIW Discussion Papers No. 1203
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
A non-linear model is applied where suddenly strong spurts of exports occur when changes of the exchange rate go beyond a zone of inaction. We call the latter a play area - analogous to mechanical play and implement an algorithm describing path-dependent playhysteresis into a regression framework. The hysteretic impact of real exchange rates on German exports is then estimated based on quarterly data from 1995Q1 to 2010Q3. For some of the main export partners of Germany outside the euro area and some of the most important tradable sectors we find significant hysteretic effects for a part of the German exports.
Subjects: 
exchange rate movements
play-hysteresis
modelling techniques
switching/spline regression
export demand
JEL: 
F14
C51
Document Type: 
Working Paper

Files in This Item:
File
Size
410.98 kB





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