Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/49504 
Year of Publication: 
2011
Series/Report no.: 
CESifo Working Paper No. 3555
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the differences of currency misalignment estimates obtained from alternative datasets derived from two International Comparison Program (ICP) surveys. A decomposition exercise reveals that the year 2005 misalignment estimates are substantially affected by the ICP price revision. Further, we find that differences in misalignment estimates are systematically affected by a country's participation status in the ICP survey and its data quality - a finding that casts doubt on the economic and policy relevance of these misalignment estimates. The patterns of changes in the estimated degree of misalignment across individual countries, as illustrated by the BRIC economies, are quite variable.
Subjects: 
Penn Effect Regression
data revision
PPP-based data
measurement factors
economic factors
JEL: 
F31
F41
E01
C31
Document Type: 
Working Paper
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