Fear of Floating and Pegging: A Simultaneous Choice Model of De Jure and De Facto Exchange Rate Regimes

We present an analysis of the determinants of de jure and de facto exchange rate regimes based on a panel probit model with simultaneous equations. The model is estimated using simulation-based maximum likelihood methods. The empirical results suggest a triangular structure of the model such that the choice of de facto regimes depends on the choice of de jure regimes but not vice versa. This gives rise to a novel interpretation of regime discrepancies.

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Year of publication:	2008-10
Authors:	von Hagen, Jürgen ; Zhou, Jizhong
Institutions:	C.E.P.R. Discussion Papers
Subject:	de facto exchange rate regimes \| developing countries \| simultaneous equations

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 7006
Classification:	C35 - Discrete Regression and Qualitative Choice Models ; F33 - International Monetary Arrangements and Institutions ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005497731