Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212513
Authors: 
Kim, Byung-Yeon
Korhonen, Iikka
Year of Publication: 
2002
Series/Report no.: 
BOFIT Discussion Papers No. 15/2002
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
We use a dynamic heterogeneous panel model to estimate real equilibrium exchange rates for advanced transition countries.Our method is based on out-of-sample estimations from middle-income and high-income countries, and we use a pooled mean group estimator.We find that exchange rates have converged in recent years in five transition countries (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) with real equilibrium exchange rates expressed in the US dollars.However, we also find that the currencies of the transition countries studied are substantially overvalued if real effective exchange rates are used.
Subjects: 
exchange rates
transition economies
dynamic heterogeneous panel estimations
JEL: 
C33
F31
P27
Persistent Identifier of the first edition: 
ISBN: 
951-686-846-0
Document Type: 
Working Paper

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