{"title":"Exchange rate dynamics and consumption of traded goods","authors":"Maxym Chaban","doi":"10.1016/j.jmacro.2024.103602","DOIUrl":null,"url":null,"abstract":"<div><p>A Constant Elasticity of Substitution (CES) aggregator of domestic and foreign goods is assumed in virtually any model of international macroeconomics with multiple traded goods. If baskets of traded goods are allocated optimally across countries, the CES aggregator links trade flows to exchange rate dynamics implying a condition for optimal allocation of individual traded goods across countries. The condition holds irrespectively of assumptions about preferences or endowment processes. This paper analyzes optimal allocation of traded goods empirically for 9 OECD countries and finds that it is mostly rejected by data. The finding casts doubts on the ability of international macroeconomic models to jointly explain dynamics of consumption and exchange rates.</p></div>","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":null,"pages":null},"PeriodicalIF":16.4000,"publicationDate":"2024-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S016407042400017X/pdfft?md5=ed64cf0c93efe3af780fe1f427b0565a&pid=1-s2.0-S016407042400017X-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S016407042400017X","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
A Constant Elasticity of Substitution (CES) aggregator of domestic and foreign goods is assumed in virtually any model of international macroeconomics with multiple traded goods. If baskets of traded goods are allocated optimally across countries, the CES aggregator links trade flows to exchange rate dynamics implying a condition for optimal allocation of individual traded goods across countries. The condition holds irrespectively of assumptions about preferences or endowment processes. This paper analyzes optimal allocation of traded goods empirically for 9 OECD countries and finds that it is mostly rejected by data. The finding casts doubts on the ability of international macroeconomic models to jointly explain dynamics of consumption and exchange rates.
几乎所有具有多种贸易产品的国际宏观经济模型都假定了国内和国外产品的恒定替代弹性（CES）集合体。如果一篮子贸易产品在各国之间得到最优分配，那么 CES 组合器就会将贸易流量与汇率动态联系起来，这就意味着单个贸易产品在各国之间最优分配的条件。该条件与偏好或禀赋过程的假设无关。本文对 9 个经合组织国家的贸易品最优配置进行了实证分析，发现数据大多否定了这一条件。这一发现使人们对国际宏观经济模型共同解释消费和汇率动态的能力产生了怀疑。
期刊介绍：
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
