Working paper/research report

Authors list: Belke, A; Göcke, M; Guenther, Martin

Publication year: 2012

ISBN: 978-3-86788-376-4

DOI Link: https://doi.org/10.4419/86788376

URL: https://hdl.handle.net/10419/61384

Title of series: Ruhr economic papers

Number in series: 327

Abstract: 

A non-linear model is applied where suddenly strong spurts of exports occur when changes of the exchange rate go beyond a zone of inaction. We call the latter a 'play' area - analogous to mechanical play and implement an algorithm describing path-dependent play-hysteresis into a regression framework. The hysteretic impact of real exchange rates on German exports is then estimated based on quarterly data from 1995Q1 to 2010Q3. For some of the main export partners of Germany outside the euro area and some of the most important tradable sectors we fi nd significant hysteretic effects for a part of the German exports.

Harvard Citation style: Belke, A., Göcke, M. and Guenther, M. (2012) Exchange Rate Bands of Inaction and Play-Hysteresis in German Exports - Sectoral Evidence for Some OECD Destinations. (Ruhr economic papers, 327). Bochum: Ruhr-Universität. https://doi.org/10.4419/86788376

APA Citation style: Belke, A., Göcke, M., & Guenther, M. (2012). Exchange Rate Bands of Inaction and Play-Hysteresis in German Exports - Sectoral Evidence for Some OECD Destinations. (Ruhr economic papers, 327). Ruhr-Universität. https://doi.org/10.4419/86788376