Extensive and intensive margins and exchange rate regimes

Hamano, Masashige;Picard, Pierre
(2017) Canadian Journal of Economics — Vol. 50, n° 3, p. 804-837 (2017)

Files

Rep2901.pdf
  • Restricted Access
  • Adobe PDF
  • 853.27 KB
Request a copy

Details

Authors
  • Hamano, MasashigeWaseda University and Université du Luxembourg
    Author
  • Picard, PierreUCLouvain
    Author
Abstract
This paper studies the costs and benefits of fixed and flexible exchange rate regimes in the presence of endogenous intensive and extensive margins of trade. The net benefit depends on the levels and volatilities of those margins as well as on their correlation with consumers’ preferences. A fixed exchange rate regime is preferred for sufficiently high labour supply elasticities and lower love for product diversity. Delays between entry and production make fixed exchange rate regimes less attractive.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Hamano, M., & Picard, P. (2017). Extensive and intensive margins and exchange rate regimes. Canadian Journal of Economics, 50(3), 804-837. https://doi.org/10.1111/caje.12279 (Original work published 2017)