The determinants of the choice of exchange rate regimes in Latin Americaa mixed multinomial logit approach

  1. Álvarez Ondina, Pedro
  2. Pérez Rivero, José Luis 1
  3. Vicente Queijeiro, Saúl de 1
  4. Vicente Cuervo, María Rosalía 1
  1. 1 Universidad de Oviedo
    info

    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

Revista:
Documentos de trabajo ( Universidad de Oviedo. Facultad de Ciencias Económicas )

Año de publicación: 2008

Número: 277

Tipo: Documento de Trabajo

DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Resumen

The choice of the exchange rate regime is one of the most significant monetary policy decisions that any economic authority has to make nowadays. Indeed, there have been many studies from a theoretical and empirical point of view, but the only common conclusion would be the lack of consensus. In the past this topic has been modeled by binary probit or cross-sectional multinomial logit models, both of which have weaknesses in the assumptions of the choices. In this paper, such issue is faced by means of a panel mixed multinomial logit model, which allows for substitution pattern among the three types of exchange rate regimes: fixed, intermediate, and flexible. Three types of choice determinants are explored: those stated by the Optimum Currency Area (OCA) theory, types of shocks and vulnerability to currency crises, using a sample of 21 Latin American countries for the period 1980-2004.

Fuente de los datos: Dialnet