Long-run pass-through from the exchange rate to import prices in African countries

This paper investigates the extent of pass-through from the nominal exchange rate to import prices for a sample of nineteen African countries. The methodology is based on panel data cointegration testing. Using annual data extending back to 1971, long-run pass-through can be best described as a fairly balanced combination of local-currency and producer-currency pricing. However, this paper offers additional insight from a moving window approach that indicates declining long-run pass-through, accompanied by decreasing inflation, occurring since the mid-1990s

How convergent are regional house prices in the United Kingdom? Some new evidence from panel data unit root testing

Using a variety of econometric methods, existing studies have failed to reach a consensus on whether or not UK regional house prices are engaged in kong-run equilibrium relationships with each other. Using data for the 197302005 study period, this study offers a novel approach to this debate through the application of unit root testing within a seemingly unrelated regression framework. It is argued that there exist significant advantages in this approach over and above existing univariate and panel data unit root testing procedures. The results indicate that the majority of UK regions exhibit regional house price convergence. However, there is an east-west split in terms of whether regional house prices have a tendency towards long-run equilibrium relationship with UK prices as whole. This is also evidence of considerable heterogeneity in the regional speeds of adjustment towards long-run equilibrium

Is a low-inflation environment associated with reduced exchange rate pass through?

This paper investigates the extent of pass through from the US dollar exchange rate to consumer prices in the European Union. A relatively new line of empirical research is pursued that considers whether or not the extent of exchange rate pass through is related to the inflationary environment. In contrast to previous empirical studies, recently developed panel data cointegrating techniques to measure long run pass through are employed. While there is evidence that long-run pass through has declined since the 1970s, it actually increased during the early ERM years despite the presence of lower inflation

Is a more stable exchange rate associated with reduced exchange rate pass-through?

Pass-through from the nominal effective exchange rate to import prices is modelled within a regime-switching environment. Evidence suggests that exchange rate pass through can be characterised as regime-specific where the probability of switching between regimes is influenced by the extent of exchange rate volatility

Evaluation of the Nurse Family Partnership in North Carolina

This is the periodic update on the evaluation of the Nurse Family Partnership program in North Carolina focused on the priority health outcomes of women and infants. During this period, we refined our methodology to more precisely estimate the effect of NFP participation on the health of women and children. In this report, we will report the estimated effect of participation on birthweight, gestational age, NICU admission, and breastfeeding initiation. We will also discuss the differential treatment effect of participation by maternal race as well as variation in estimation between statewide, county and hospital level analysis.As previously reported, this study focuses on NFP participants in North Carolina and proximal health outcomes as well as health care costs. This study is limited by its relatively small sample size used to analyze uncommon outcomes, suggesting the ability to detect programmatic effects may be limited. In other words, because of the relatively small sample, a priori we might expect to conclude there is no effect when there truly is

New evidence on long-run output convergence among Latin American countries

This study assesses long-run real per capita output convergence among selected Latin American countries. The empirical investigation, however, is based on an alternative approach. Strong convergence is determined on the basis of the first largest principal component, based on income differences with respect to a chosen base country, being stationary. The qualitative outcome of the test is invariant to the choice of base country and, compared to alternative multivariate tests for long-run convergence, this methodology places less demands on limited data sets. Using annual data for the period 1960-2000, strong convergence is confirmed for the Central American Common Market. However, an amended version of the test confirms weaker long-run convergence in the case of the Latin American Integration Association countries.output convergence, Latin America, common trends

Purchasing Power Parity and the Fractional Integration of the Real Exchange Rate: New Evidence for Less Developed Countries

This study tests for relative purchasing power parity for a sample of thirty less developed countries. The empirical analysis is based on testing for the fractional integration of real exchange rates. Using quarterly data covering the period 1973-2001, there is evidence against purchasing power parity for the vast majority of less developed countries using ADF unit root tests. However, we find that the real exchange rates of upto eight countries are fractionally integrated thereby suggesting that mean-reversion is by no means a rare phenomenon. There is mixed evidence that purchasing power parity is restricted to high inflation less developed countries.