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Dosse Toulaboe

Bio: Dosse Toulaboe is an academic researcher from Fort Hays State University. The author has contributed to research in topics: Exchange rate & Elasticity (economics). The author has an hindex of 3, co-authored 4 publications receiving 14 citations.

Papers
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Journal Article
TL;DR: In this article, the authors investigated the link between exchange rate regimes and inflation performance in developing countries and found that the rate of inflation is positively linked to real exchange rate depreciation regardless of exchange rate arrangement.
Abstract: This paper investigates the link between exchange rate regimes and inflation performance in developing countries. De facto classifications of exchange rate systems are first obtained by using different methodologies to assess the volatility of the observed nominal effective exchange rates. The empirical work on the linkage between exchange rate regimes and inflation is then undertaken by developing and estimating an expanded version of the conventional Philips curve model. Two major conclusions are reached on the basis of our results: (1) the rate of inflation is unambiguously positively linked to real exchange rate depreciation regardless of exchange rate arrangement and, more specifically, (2) that the rate of inflation is much more responsive to the real exchange rate levels in the flexible rate systems than in the fixed regimes, suggesting that the former regime is more inflationary.

7 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined the size of real exchange rate misalignment in seven developing Asian counties and Japan and developed an analytical framework to estimate the equilibrium RERs, which were then used to derive the RER misalignments.
Abstract: This paper examines the size of real exchange rate (RER) misalignment in seven developing Asian counties and Japan An analytical framework is developed to estimate the equilibrium RERs, which are then used to derive the RER misalignments The estimation results from the model indicate that RERs have been misaligned in most of the Asian countries during the sample period, although not to the extent claimed in some studies The real exchange behaviour in these countries is mostly consistent with the economic fundamentals and the magnitude of measured RER misalignment is not alarming

6 citations

Journal ArticleDOI
TL;DR: In this article, an analytical framework is developed to estimate real exchange rate misalignments and, based on an autoregressive distributed lag (ARDL) bound testing approach, the long and short run relationships between U.S. exports and its key determinants are estimated.
Abstract: This paper examines real exchange rate misalignments in seven Asian countries and their impacts on U.S. exports. An analytical framework is first developed to estimate real exchange rate misalignments and, based on an autoregressive distributed lag (ARDL) bound testing approach, the long and short run relationships between U.S. exports and its key determinants are estimated. The empirical results indicate that real exchange rates are moderately misaligned in most of the Asian countries. A negative and significant long run relationship between real exchange rate misalignment and U.S. exports to each country is also detected. The results also show that real exchange rate continues to maintain its position as one of the important factors explaining international trade.

3 citations

Journal Article
TL;DR: In this paper, the authors show that the 2+1 rule also applies to classes of nonlinear demand functions, thus justifying the assumption of demand-function linearity for tax-revenue maximization.
Abstract: When demand is linear, and supply is perfectly elastic, tax revenue is maximized at a per-unit tax that causes demand elasticity to increase to twice its initial value, plus one. This is termed the 2+1 rule. This paper shows that the 2+1 rule also applies to classes of nonlinear demand functions, thus justifying the assumption of demand-function linearity for tax-revenue maximization in these cases. We also demonstrate that while optimal tax revenue and price elasticity of demand are inversely related, it is not necessarily best from a tax-revenue maximization perspective to tax the lower elasticity good.
Journal ArticleDOI
TL;DR: In this paper , the authors investigated the stock market integration in North America, the Eurozone, and other OECD countries using different statistical tools, including correlation, cointegration, vector-error correction, and Granger causality tests.
Abstract: This paper investigates the stock market integration in North America, the Eurozone, and other OECD countries. The main questions addressed include whether the stock markets in each of the three country groups are cointegrated and whether the relationships are stable over time. The linkages are modeled using different statistical tools, including correlation, cointegration, vector-error correction, and Granger causality tests. The results show that the correlation coefficients are noticeably higher for the two country groups that are members of a trade or currency zone (NAFTA and the Eurozone) compared to the other OECD countries. Considering full samples, the results from the cointegration tests point to no cointegration for NAFTA markets, while they are mixed in the case of the other two country groups. After controlling for structural breaks by estimating the models for different sub-periods, the verdicts from the two cointegration tests were unanimous as the results unveil evidence of cointegration in each sub-periods for each of the three country groups. The results support the hypothesis that financial markets in the OECD countries are cointegrated. They also confirm the existence of structural breaks, the dynamic nature of the long-run integration of equity markets, and the argument that markets exhibit time‐varying long-run interdependence.

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Posted Content
TL;DR: The authors explores the view that the Asian currency and financial crises in 1997 and 1998 reflected structural and policy distortions in the countries of the region, even if market overreaction and herding caused the plunge of exchange rates, asset prices, and economic activity to be more severe than warranted by the initial weak economic conditions.
Abstract: The paper explores the view that the Asian currency and financial crises in 1997 and 1998 reflected structural and policy distortions in the countries of the region, even if market overreaction and herding caused the plunge of exchange rates, asset prices, and economic activity to be more severe than warranted by the initial weak economic conditions. The first part of the paper provides an overview of economic fundamentals in Asia on the eve of the crisis, with emphasis on current account imbalances, quantity and quality of financial overlending,' banking problems, and composition, maturity and size of capital inflows.

465 citations

Book ChapterDOI
01 Jan 1990
TL;DR: The study of exchange rate dynamics is concerned with the movement of exchange rates over time as mentioned in this paper, and exchange rate movements, in common with other economic variables, can be classified into movements induced by temporary equilibrium phenomena and permanent equilibrium phenomena.
Abstract: The study of exchange rate dynamics is concerned with the movement of exchange rates over time. Exchange rate movements, in common with other economic variables, can be classified into movements induced by temporary equilibrium phenomena, or by permanent equilibrium phenomena. The former tend to be inherently short term while the latter are more concerned with longer- term trends in exchange rate movements. Here, we are primarily concerned with the former although we shall also have something to say about the latter.

120 citations

Posted Content
TL;DR: In this article, a review of the empirical literature on the effects of the ten macroeconomic institutions on macroeconomic performance indicators (including growth, among several other variables) yields striking differences between institutions.
Abstract: What can be learned from the world experience about different macroeconomic institutions, to improve macroeconomic performance in countries that face high volatility and large unpredictable structural changes in international commodity prices, and in the MENA region in particular? In addressing this question, this paper starts by describing the recent evolution and current state of ten formal economic institutions in five key areas of macroeconomic management, for a large world sample and 6 regions. A review of the empirical literature (conducted separately for world and MENA samples) on the effects of the ten institutions on macroeconomic performance indicators (including growth, among several other variables) yields striking differences between institutions. A new Macroeconomic Institutions Frontier Index, which provides country-level measures of adoption of eight current best-practice institutions, is applied to quantify the distance of MENA countries from the international best practice in adopting frontier institutions. Then the paper focuses on the reverse causality, reviewing the international evidence on economic and institutional conditions that foster adoption of frontier macroeconomic institutions. Final policy lessons are drawn for strengthening macroeconomic policy making and institutional reform in MENA countries.

14 citations

Journal ArticleDOI
TL;DR: In this paper, the authors estimate long-run equilibrium real exchange rates (ERER) for a panel of eight large emerging market economies (EMEs) over 1995-2017 based on structural factors.

9 citations