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Extensive and intensive margins and exchange rate regimes

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Hamano, Masashige [Waseda University and Université du Luxembourg] Picard, Pierre [UCL]

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.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès restreint
Publication date 2017
Language Anglais
Journal information "Canadian Journal of Economics" - Vol. 50, no.3, p. 804-837 (2017)
Peer reviewed yes
Publisher Wiley-Blackwell Publishing, Inc. ((United States) Hoboken)
issn 0008-4085
e-issn 1540-5982
Publication status Publié
Affiliations UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
University of Luxembourg - CREA
Links
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Bibliographic reference Hamano, Masashige ; Picard, Pierre. Extensive and intensive margins and exchange rate regimes. In: Canadian Journal of Economics, Vol. 50, no.3, p. 804-837 (2017)
Permanent URL http://hdl.handle.net/2078.1/187600