The objective of this paper is to investigate the persistence in Turkish real exchange rates (RER) using unit root tests and autoregressive fractionally integrated moving average (ARFIMA) models. We consider two RERs, one in terms of the German DM and the other, in terms of the US$. The plots of...

Botswana's successive currency devaluations and recent move from a fixed to a crawling peg exchange rate regime raise the question of whether the exchange rate might be misaligned with economic fundamentals. This paper, applying the behavioral equilibrium exchange rate (BEER) approach, analyzes...

In the context of monopolistic price adjustment and price setting behavior on the part of firms, it is shown that a large discrete adjustment of the nominal exchange rate as opposed to a crawling peg is likely to result in faster adjustment of domestic prices. This is the case because an...

This study examines the empirical validity of the weak-form Efficient Market Hypothesis (EMH) for the foreign exchange market of Sri Lanka, using a battery of (univariate and panel) unit root tests, including those that allow for structural breaks. Monthly exchange rates for four major...

The first essay developed a respondent model of Bayesian updating for a double-bound dichotomous choice (DB-DC) contingent valuation methodology. I demonstrated by way of data simulations that current DB-DC identifications of true willingness-to-pay (WTP) may often fail given this respondent...