Econometric Analysis of Discrete Reforms

October 1, 2001

Preview Citation

Format: Chicago

Alexei P Kireyev. Econometric Analysis of Discrete Reforms, (USA: International Monetary Fund, 2001) accessed November 8, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper suggests an econometric methodology for testing the effectiveness of reforms implemented in one major step, i.e., discrete reforms. The methodology is based on the exogeneity properties of variables in an econometric model. The paper specifies the preconditions for setting up an appropriate model; suggests an economic interpretation of the tests for weak, strong, and superexogeneity; and illustrates this methodology by applying it to two cases of instantaneous reforms. The exogeneity properties of variables in a correctly specified econometric model may help uncover information on the preparation, implementation, and the outcome of such reforms, which could be useful for future policy advice.

Subject: Econometric analysis, Econometric models, Exchange rate arrangements, Exchange rate unification, Exchange rates, Foreign exchange

Keywords: A. data sources, Appendix table, Econometric models, Econometric policy analysis, Economic policy, Effectiveness of reform, ES irrt der Mensch, Exchange rate arrangements, Exchange rate reform, Exchange rate unification, Exchange rates, Exogeneity, Exogeneity analysis, Exogeneity properties, Exogeneity properties of a tax variable, Exogeneity property, Model analysis, One-step reform, Policy reform, Real GDP, Reform d, Reform decision, Reform efficiency analysis, Reform process consist, Reform step dummy, Tax reform, Testing reforms, Transmission variable, WP

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/156
Stock No:

WPIEA1562001
ISBN:

9781451857405
ISSN:

1018-5941

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