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The U.S. trade imbalance and real exchange rate: An application of the heterogeneous panel cointegration method

✍ Scribed by Yi-Bin Chiu; Chien-Chiang Lee; Chia-Hung Sun


Book ID
116424033
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
251 KB
Volume
27
Category
Article
ISSN
0264-9993

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## Abstract A typical finding in the empirical literature is that import and export demand elasticities are rather low, and that the Marshall–Lerner (ML) condition does not hold. However, despite the evidence against the ML condition, the consensus is that real devaluations do improve the balance o