The U.S. Dollar Real Exchange Rate a Real Option Approach

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dc.contributor.author Lahtinen, Markus -
dc.date.accessioned 2012-06-17T20:09:30Z
dc.date.available 2012-06-16 13:02:14 -
dc.date.available 2012-06-17T20:09:30Z
dc.date.issued 2003 -
dc.identifier.isbn 951-44-5776-5 -
dc.identifier.issn 1458-1191 -
dc.identifier.uri http://tampub.uta.fi/handle/10024/65617
dc.description.abstract The aim of this paper is to discuss the determinants of the U.S. dollar real exchange rate fluctuation. We focus our analysis on a nominal exchange rate effect on tradable prices. We explicitly consider the effects of profit maximizing foreign firms’ entry decisions on the domestic tradable prices through the supply changes after a large appreciation. If firms face sunk entry costs when breaking into foreign markets, the extent of pass-through will depend on the expected changes of nominal exchange rate. Typically, exchange rate uncertainty is determined as a volatility of continuos time series process. We enlarge the discussion to consider also possible jumps in the expected exchange rate time path. Finally, an interesting perspective is provided by a real option approach that emphasize dynamic supply effects through sunk costs and uncertainty. -
dc.format.extent 31 -
dc.language.iso en -
dc.title The U.S. Dollar Real Exchange Rate a Real Option Approach -
dc.type fi=Erillisteos | en=Monograph| -
dc.identifier.urn urn:isbn:951-44-5776-5 -
dc.type.version fi=Kustantajan versio | en=Publisher's version| -
dc.subject.okm fi=Kansantaloustiede | en=Economics| -
dc.oldstats 577 -
dc.seriesname.electronic Tampere Economic Working Papers Net Series
dc.relation.numberinserieselectronic 18/2003

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