{
  "title": "Bivariate Assessments of Real Exchange Rates Using PPP Data",
  "publication": "IMF Working Papers, June 1, 2008",
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  "summary": "This paper focuses on assessments of real exchange rates using PPP data and examines their limitations when these are based exclusively on bivariate estimations.",
  "sections": [
    {
      "heading": "Analytical framework and methods",
      "content": "- Focus: assessments of real exchange rates using PPP data.\n- Primary methodological critique: bivariate estimations make many restrictive assumptions (as shown by the analytical framework of the real exchange rate presented in the paper).\n- Contrast: the critique does not apply to multivariate approaches such as utilized by CGER."
    },
    {
      "heading": "Empirical evidence and robustness",
      "content": "- Empirical finding: estimates from bivariate assessments are not robust to changes in sample.\n- Specific sample sensitivity noted: differences in incomes per capita produce changes in estimates, showing lack of robustness.\n- Implication: bivariate assessments fail to control for heterogeneity across countries."
    },
    {
      "heading": "Conclusions and implications for practice",
      "content": "- Main conclusion: the bivariate assessment of real exchange rates does not control for the heterogeneity that exists across countries, thus limiting their usefulness.\n- Recommendation implicit in critique: prefer multivariate approaches (for example, as utilized by CGER) when assessing real exchange rates using PPP data."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subjects: Exchange rates, Income, Public investment and public-private partnerships (PPP), Purchasing power parity, Real exchange rates\n- Keywords: natural logarithm, rate of exchange, time series, total factor productivity, WP\n\n---\n\n Content in this bundle\n\n- wp08153\n  - wp08153 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08153 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/bivariate-assessments-of-real-exchange-rates-using-ppp-data-22064"
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    "Authors: Juan Zalduendo",
    "Published: June 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870114.001",
    "Focus: assessments of real exchange rates using PPP data.",
    "Primary methodological critique: bivariate estimations make many restrictive assumptions (as shown by the analytical framework of the real exchange rate presented in the paper).",
    "Contrast: the critique does not apply to multivariate approaches such as utilized by CGER.",
    "Empirical finding: estimates from bivariate assessments are not robust to changes in sample.",
    "Specific sample sensitivity noted: differences in incomes per capita produce changes in estimates, showing lack of robustness.",
    "Implication: bivariate assessments fail to control for heterogeneity across countries.",
    "Main conclusion: the bivariate assessment of real exchange rates does not control for the heterogeneity that exists across countries, thus limiting their usefulness.",
    "Recommendation implicit in critique: prefer multivariate approaches (for example, as utilized by CGER) when assessing real exchange rates using PPP data.",
    "Subjects: Exchange rates, Income, Public investment and public-private partnerships (PPP), Purchasing power parity, Real exchange rates",
    "Keywords: natural logarithm, rate of exchange, time series, total factor productivity, WP",
    "**_wp08153**"
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