Semi-Nonparametric Estimates of Currency Substitution: the Demand for Sterling in Europe
The paper presents new evidence of significant substitution between European domestic monetary assets and foreign holdings of sterling. The finding of significant cross-country currency substitution implies reduced costs of transition towards monetary union and easier European policy convergence. Elasticities of substitution, using the Morishima measure, are estimated from the semi-nonparametric Fourier flexible form. Copyright Blackwell Publishing Ltd 2004.
Year of publication: |
2004
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Authors: | Drake, Leigh ; Fleissig, Adrian R. |
Published in: |
Review of International Economics. - Wiley Blackwell, ISSN 0965-7576. - Vol. 12.2004, 3, p. 374-394
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Publisher: |
Wiley Blackwell |
Saved in:
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