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dc.contributor.authorGURDGIEV, CONSTANTIN
dc.date.accessioned2011-09-02T11:06:17Z
dc.date.available2011-09-02T11:06:17Z
dc.date.issued2005
dc.date.submitted2005en
dc.identifier.citationGurdgiev, Constantin, Owner-Used Capital Goods and the Exchange Rate Determination, 2005en
dc.identifier.otherN
dc.identifier.urihttp://hdl.handle.net/2262/59257
dc.descriptionPUBLISHEDen
dc.description.abstractPresent paper addresses the issue of the short and long run determination of the exchange rates in the Redux model of Obstfeld and Rogoff (1995). Current extension of the Redux model includes the investment projects that simultaneously can serve as investment allocation subject to the capital gains, as well as a regular consumption good. In contrast to the standard theoretical results, our model produces the exchange rate overshooting both in presence and in absence of price rigidities in the markets for final goods. This effect depends on the size of the owner-used capital goods expenditure relative to the total consumption expenditure, as well as the initial level of inflation at home. Depending on parameter values, and the initial conditions, the model supports possibility for exchange rate dynamics that include either overshooting or undershooting.en
dc.language.isoenen
dc.rightsYen
dc.subjectEconomicsen
dc.subjectExchange Ratesen
dc.subjectOvershootingen
dc.subjectCapitalen
dc.subjectOwner-Occupied Housingen
dc.titleOwner-Used Capital Goods and the Exchange Rate Determinationen
dc.typeWorking Paperen
dc.type.supercollectionscholarly_publicationsen
dc.identifier.peoplefinderurlhttp://people.tcd.ie/gurdgic
dc.identifier.rssinternalid74819


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