Abstract
This chapter discusses the data and methodology of the study. It is organised in 5 sections. It begins by deriving the models used to estimate the degree of exchange rate pass-through and the determinants of inter-product differences in exchange rate pass-through. These models are based on the theory developed in Chapter 2. Salient features of the data base are discussed in Section 3, while Section 4 defines and describes the variables used in the ensuing econometric analysis, with emphasis on the method of construction. The econometric methodology is discussed in two stages in Section 5. The estimation of the exchange rate pass-through coefficients involves the analysis of time-series data. The econometric issues relevant to this type of analysis are discussed in Section 5.5.1. Emphasis is given to recent developments in the analysis of the time-series properties of the data, particularly in relation to stationarity and cointegration. The analysis of the determinants of inter-product differences in exchange rate pass-through involve the analysis of cross-sectional data. The econometric issues relevant to the cross-section analysis are discussed in Section 5.5.2. A final section provides a summary of major points.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1996 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Menon, J. (1996). Model, Data and Methodology. In: Exchange Rates and Prices. Lecture Notes in Economics and Mathematical Systems, vol 433. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-52070-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-52070-9_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-60801-1
Online ISBN: 978-3-642-52070-9
eBook Packages: Springer Book Archive