Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72440 
Authors: 
Year of Publication: 
2005
Series/Report no.: 
UCD Centre for Economic Research Working Paper Series No. WP05/21
Publisher: 
University College Dublin, UCD School of Economics, Dublin
Abstract: 
This paper reviews alternative approaches to measuring an economy´s cost competitiveness and proposes some new measures derived from the economic theory of index numbers. The indices provide a theoretical benchmark for estimated real effective exchange rates, but di¤er from standard measures in that they are based on marginal rather than average sectoral shares in GDP or employment. The use of the new indices is illustrated by some simple calculations which highlight the potential exposure of the Irish economy to fluctuations in the euro-sterling exchange rate.
Subjects: 
competitiveness
economic theory of index numbers
European Monetary Union (EMU)
real effective exchange rates (REERs)
JEL: 
F40
C43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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