Purchasing Power Parity for Traded and Non-traded Goods: A Structural Error Correction Model Approach

When univariate methods are applied to real exchange rates, point estimates of autoregressive (AR) coefficients typically imply very slow rates of mean reversion. However, a recent study by Murray and Papell (2002) calculates confidence intervals for estimates of half-lives for long-horizon and post-1973 data, and concludes that univariate methods provide virtually no information regarding the size of the half lives. This paper estimates half-lives with a system method based on a structural error correction model for the nominal exchange rate, a domestic price index, a foreign price index, and a monetary variable. The method is applied to estimate half lives of real exchange rates based on producer price indices, consumer price indices, and GDP implicit deflators. The idea is that the traded component of the producer price index (PPI) is proportionately larger than that of the consumer price index (CPI). If the convergence rate is faster for traded goods prices than that for non-traded goods prices, half-lives for the real exchange rate based on the PPI should be shorter than those for the real exchange rate based on the CPI and that on the GDP implicit deflator. Our empirical results are consistent with this view.

Purchasing Power Parity and the Taylor Rule

In the Kehoe and Midrigan (2007) model, the persistence parameter of the real exchange rate is closely related to the measure of price stickiness in the Calvo-pricing model. When we employ this view, Rogo's (1996) 3 to 5 year consensus half-life implies that rms update their prices every 18 to 30 quarters on average. This is at odds with most estimates from U.S. aggregate data when single equation methods are applied to the New Keynesian Phillips Curve (NKPC), or when system methods are applied to Dynamic Stochastic General Equilibrium (DSGE) models that include the NKPC. It is well known, however, that there is a large degree of uncertainty around the consensus half-life of the real exchange rate. To obtain a more efficient estimator, this paper develops a system method that combines the Taylor rule and a standard exchange rate model to estimate half-lives. We use a median unbiased estimator for the system method with nonparametric bootstrap confidence intervals, and compare the results with those from the single equation method typically used in the literature. Applying the method to the real exchange rates of 18 developed countries against the U.S. dollar, we nd that most of the half-life estimates from the single equation method fall in the range of 3 to 5 years with wide confidence intervals that extend to positive infinity. In contrast, the system method yields median-unbiased estimates that are typically shorter than one year with much sharper 95% confidence intervals, most of which range from 3 quarters to 5 years. These median unbiased estimates and the lower bound of the confidence intervals for the half-lives of real exchange rates are consistent with most estimates of price stickiness using aggregate U.S. data for the NKPC and DSGE models.Purchasing Power Parity, Calvo Pricing, Taylor Rule, Half-Life of PPP Deviations, Median Unbiased Estimator, Grid-t Confidence Interval

Economic Development in Post-War Cambodia Outline

A centrally planned economic was adopted in Cambodia from 1980s until 1991 when all political factions came to a peace agreement in France. Although attempts at reform start modestly in 1985, momentum was made after 1992, Initial reform was supported by the fund called Systemic Transportation Facility and the later under the Enhanced Structural Adjustment Facility. Progress has been made in moving toward a free market-oriented economy, with state owned enterprises now accounting for less than 10% of GDP. To accelerate economic development in Cambodia, the government adopted their first social economic development plan (1996-2000) with a view to consolidating the development progress. This report tries to outline the major economic development and reforms in Cambodia, based primarily on reports of the International Monetary Found (IMF).Article信州大学農学部演習林報告 38: 127-132(2002)departmental bulletin pape

Effect of Luobuma leaves against oxidation of low-density lipoprotein : a cell culture assay

In a previous study, we observed an improvement in the atherosclerosis index, together with a decrease in blood cholesterol, in rats given Luobuma extract orally and fed a high-cholesterol diet. The present study was designed to examine the function of oxidized low-density lipoprotein (LDL) in atherosclerotic lesions, using cultured cells. When endothelial cells were cultured with LDL in the presence of Cu^, the release of thiobarbituric acid (TBA) -reactive substance and lactic dehydrogenase into the culture medium was increased, with a decrease in cell viability. However, when Luobuma extract was also present in the culture medium, changes in these parameters were more favorable. In another in vitro system using macrophages, the levels of TBA-reactive substance, total cholesterol and esterified cholesterol were all significantly lower in the presence of Luobuma extract than in its absence. There was also morphological evidence that foam cell formation through incorporation of oxidized LDL was suppressed. These findings indicate that Luobuma suppresses the progression of atherosclerosis, in which oxidized LDL is involved. 先に,高コレステロール食投与ラットに羅布麻エキスを経口投与した場合,高コレステロール血症の低下とともに動脈硬化指数の改善作用が認められたので,今回,粥状動脈硬化病変への酸化LDLの機能を細胞を用い検寸寸した。まず内皮細胞にLDLとCu^を添加して培養した場合,培地中へのチオバルビツール酸反応物質,総LDHの放出が増加して,細胞生存率の低下が観察された。しかし羅布麻エキス添加群ではこれらパラメータがいずれも改善し,またマクロファージを用いた系でもチオバルビツール酸反応物質,コレステロールエステル,コレステロールエステル/遊離コレステロール比がいずれも無添加群より有意に低下し,形態学的な変化も酸化LDLのとり込みに伴う泡沫化の形成を抑制する知見が得られた。このことから,羅布麻は酸化LDLが関与する動脈硬化の進展過程を抑制することが明らかとなった

Benchmarks of subcriticality in accelerator-driven system at Kyoto University Critical Assembly

Basic research on the accelerator-driven system is conducted by combining U-235-fueled and Th-232-loaded cores in the Kyoto University Critical Assembly with the pulsed neutron generator (14 MeV neutrons) and the proton beam accelerator (100 MeV protons with a heavy metal target). The results of experimental subcriticality are presented with a wide range of subcriticality level between near critical and 10,000 pcm, as obtained by the pulsed neutron source method, the Feynman-alpha method, and the neutron source multiplication method