Publication
Jun 2010
This paper investigates if the euro's effect on euro-area trade differs across trade sectors and across country pairs, and to what degree heterogeneity matters for estimating the aggregate euro effect. Time-varying latent variables, which are speci fic to each sector in each country pair, control for omitted trade costs and mismeasured resistance terms. Parameter heterogeneity and time-varying latent variables are both strongly supported by the data.
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English (PDF, 36 pages, 397 KB) |
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Author | Helmut Herwartz, Henning Weber |
Series | Kiel Institute Working Papers |
Issue | 1631 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |