In Search of Equilibrium: Estimating Equilibrium Real Exchange Rates in Sub-Saharan African Countries

Author/Editor:

Joannes Mongardini ; Alexander Chudik

Publication Date:

April 1, 2007

Electronic Access:

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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:

This paper presents a methodology to estimate equilibrium real exchange rates (ERER) for Sub-Saharan African (SSA) countries using both single-country and panel estimation techniques. The limited data set hinders single-country estimation for most countries in the sample, but panel estimates are statistically and economically significant, and generally robust to different estimation techniques. The results replicate well the historical experience for a number of countries in the sample. Panel techniques can also be used to derive out of sample estimates for countries with a more limited data set.

Series:

Working Paper No. 2007/090

Subject:

Estimation techniques Government consumption Real exchange rates Technology transfer Terms of trade

English

Publication Date:

April 1, 2007

ISBN/ISSN:

9781451866544/1018-5941

Stock No:

WPIEA2007090

Pages:

39

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