Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212540
Authors: 
Égert, Balázs
Lommatzsch, Kirsten
Year of Publication: 
2004
Series/Report no.: 
BOFIT Discussion Papers No. 9/2004
Abstract: 
This paper sets out to estimate equilibrium real exchange rates for the Czech Republic, Hungary, Po-land, Slovakia and Slovenia.A theoretical model is developed that provides an explanation for the ap-preciation of the real exchange rate based on tradable prices in the acceding countries.Our model can be considered as a competing but also completing framework to the traditional Balassa-Samuelson model.With this as a background, alternative cointegration methods are applied to time series (Engle-Granger, DOLS, ARDL and Johansen) and to three small-size panels (pooled and fixed effect OLS, DOLS, PMGE and MGE), which leaves us with around 5,000 estimated regressions.This enables us to examine the uncertainty surrounding estimates of equilibrium real exchange rates and the size of the underlying real misalignments.
Subjects: 
Real exchange rate
equilibrium exchange rate
tradable prices
transition
cointegration
JEL: 
F31
Persistent Identifier of the first edition: 
ISBN: 
951-686-960-2
Document Type: 
Working Paper

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