Is Black Market Exchange Rate a Good Indicator of Equilibrium Exchange Rate? A Simple Test with Evidence from South Asia

The black market exchange rate premium is widely used in the empirical literature as an indicator of trade and exchange rate distortions. This paper presents a simple test of the null hypothesis that the black market exchange rate is a reliable indicator of the equilibrium exchange rate. The evidence from India and Sri Lanka rejects the null and thus raises serious doubts about the validity of the current empirical practice

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Year of publication:	2010
Authors:	Emran, M. Shahe
Other Persons:	Shilpi, Forhad (contributor)
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Illegaler Handel \| Illicit trade \| Wechselkurs \| Exchange rate \| Südasien \| South Asia \| Kaufkraftparität \| Purchasing power parity \| Schätzung \| Estimation \| Theorie \| Theory

Extent:	1 Online-Ressource (9 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 14, 2010 erstellt
Other identifiers:	10.2139/ssrn.1552885 [DOI]
Classification:	F14 - Country and Industry Studies of Trade ; O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013147841