Intertemporal substitution in imported durables

• 成果类型: Article
• 署名作者: Lee, J
• 署名单位: University of California System; University of California Irvine
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(97)00021-4
• 发表日期: 1998
• 页码: 113-133
• 关键词: import prices of durables; expected exchange rates; intertemporal substitutability

摘要

This paper analyzes the hitherto unexplored relation between expected exchange rates and import prices of durable goods. The distinguishing feature of durable goods is their asset-like quality, implying that their current and future sales are substitutable: durability induces intertemporal substitution. Hence, expected exchange rates affect the current price of imported durables. Although the sign of the effect cannot be determined by theory only, the evidence shows that an expected appreciation raises the current import price of durables. (C) 1998 Elsevier Science B.V.