蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Real Exchange Rates and Endogenous Productivity
蝌蚪网 Journal: Macroeconomics
(pp. 204–61)
Abstract
Two-thirds of the real exchange rate's (RER's) volatility occurs at low frequencies. We provide empirical evidence that links movements in the RER to changes in research and development spending and patents. A two-country real business cycle model with endogenous productivity and a gradual dissemination of ideas can rationalize these facts. Endogenous productivity alters RER dynamics by inducing (i) a persistent gap in productivity between countries and (ii) a reallocation of resources toward research and development spending. The estimated full model effortlessly replicates the dynamic properties of the RER at all horizons without sacrificing the model's fit along other dimensions.Citation
Gornemann, Nils, Pablo A. Guerr贸n Quintana, and Felipe Saffie. 2025. "Real Exchange Rates and Endogenous Productivity." 蝌蚪网 Journal: Macroeconomics 17 (4): 204–61. DOI: 10.1257/mac.20210445Additional Materials
JEL Classification
- E13 General Aggregative Models: Neoclassical
- E32 Business Fluctuations; Cycles
- F31 Foreign Exchange
- F43 Economic Growth of Open Economies
- F44 International Business Cycles