Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185926
Authors: 
Sax, Christoph
Weder, Rolf
Year of Publication: 
2009
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 145 [Year:] 2009 [Issue:] 4 [Pages:] 463-483
Abstract: 
This article challenges the view that a lack of competition and a high level of regulations are the main causes of Switzerland's high prices. First, we point out a number of stylized facts which are inconsistent with this popular view. Second, we econometrically asses the "competition-regulation hypothesis" together with the well-established determinants from the real exchange rate literature in a panel of 22 OECD countries from 1970 to 2004. We find that changes in the terms of trade and the degree of openness, and to a minor extent in government expenditures and the current account, explain the movements in the Swiss real exchange rate reasonably well over the last 35 years. Changes in regulations and competition as well as in relative productivities perform poorly as explanatory variables.
Subjects: 
Real Exchange Rate
Terms of Trade
Balassa-Samuelson
Regulations
Switzerland
JEL: 
F14
N74
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Social Media Mentions:

Files in This Item:
File
Size





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