Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5058481 | Economics Letters | 2015 | 5 Pages |
Abstract
â¢IRBC models predict a relationship between real exchange rates and consumption.â¢This theoretical prediction is not supported by the empirical literature.â¢We apply linear and nonlinear Granger-causality tests to data for 14 OECD countries.â¢The null of no-Granger causality is rejected for the majority of countries.
International real business cycle models predict a relationship between real exchange rates and consumption. This prediction is not supported by the empirical literature. In a new approach, we apply nonlinear Granger-causality tests to data for 14 OECD countries.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Efthymios G. Pavlidis, Ivan Paya, David A. Peel,