Measuring Long-Run Exchange Rate Pass-Through.

The paper discusses the issue of estimating short- and long-run exchange rate pass-through to import prices in euro area countries and reviews some problems with the measures recently proposed in the literature. Theoretical considerations suggest a long-run Engle and Granger cointegrating relationship (between import unit values, the exchange rate and foreign prices), which is typically ignored in existing empirical studies. We use time series and up-to-date panel data techniques to test for cointegration with the possibility of structural breaks and show how the long-run may be restored in the estimation. The main finding is that allowing for possible breaks around the formation of EMU and the appreciation of the euro starting in 2001 helps restore a long run cointegration relationship, where over the sample period the fixed component of the pass-through decreased while the variable component tended to increase.Exchange rates ; Pass-through ; Import prices ; Panel cointegration ; Structural break.

Measuring Long-Run Exchange Rate Pass-Through

The paper discusses the issue of estimating short- and long-run exchange rate pass-through to import prices in euro area countries and reviews some problems with the measures recently proposed in the literature. Theoretical considerations suggest a cointegrating relationship (between import unit values, the exchange rate and foreign prices), which is typically ignored in existing empirical studies. We use time series and up-to-date panel data techniques to test for cointegration with the possibility of structural breaks and show how the long run may be restored in the estimation. The main finding is that allowing for possible breaks around the formation of EMU and the appreciation of the euro starting in 2001 helps restore a long run cointegration relationship, where over the sample period the fixed component of the pass-through decreased while the variable component tended to increase

A leak-before-break strategy for CANDU primary piping systems

Recent advances in elastic-plastic fracture mechanics have made it possible to assess the stability of cracks in ductile piping systems. These technological developments have been used by Ontario Hydro as the nucleus of an approach for demonstrating that CANDU primary heat transport piping systems will not break catastrophically; at worst they would leak at a detectable rate. This leak-before-break approach has been taken on the Darlington nuclear generating station as a design stage alternative to the provision of pipe whip restraints on large diameter, primary heat transport system piping. Positive conclusions reached via this approach are considered sufficient to exclude the requirement to provide protective devices, such as pipe whip restraints. In arriving at the proposed leak-before-break approach a review of current and proposed leak-before-break licensing positions of other jurisdictions (particularly those in the United States and the Federal Republic of Germany) was carried out. The approach presented makes use of recent American developments in the area of elastic-plastic fracture mechanics. It also gives consideration to aspects which are unique to the pressurized heavy water (CANDU) reactors used by Ontario Hydro. The present paper describes the proposed leak-before-break approach and illustrates its use by applying it to the Darlington generating station primary heat transport system pump suction piping. © 1986

Demonstrating leak-before-break for CANDU heat transport piping

The leak-before-break approach is being used for Ontario Hydro\u27s Darlington nuclear generating station as an alternative to the provision of pipe-whip restraints on large diameter primary heat transport system piping. These technological developments have been used by Ontario Hydro as the nucleus of an approach for demonstrating that CANDU Class 1 carbon steel piping will not break catastrophically; at worst it would leak at a detectable rate and corrective action would be taken well before catastrophic rupture could occur. The present paper describes how the need for a leak-before-break approach evolved, considerations given to developing an approach, and how it is being applied. Finally, the paper updates the status of this program and discusses future plans in this area. © 1988