A Darwinian perspective on “exchange rate undervaluation‿

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• 作者：Qingyuan Du^a ; ^{qingyuan.du@monash.edu" class="auth_mail" title="E-mail the corresponding author} ; Shang-Jin Wei^b ; ^{swei@adb.org" class="auth_mail" title="E-mail the corresponding author}
• 关键词：F3 ; F4 ; J1 ; J7
• 刊名：European Economic Review
• 出版年：2016
• 出版时间：April 2016
• 年：2016
• 卷：83
• 期：Complete
• 页码：111-138
• 全文大小：1777 K

文摘

This paper studies how status competition for marriage partners can generate surprising effects on the real exchange rate (RER). In theory, a rise in the sex ratio (increasing relative surplus of men) can generate a decline in the RER. The effect can be quantitatively large if the biological desire for a marriage partner is strong. We also provide within-China and cross-country empirical evidence to support the theory. As an application, our cross-country estimation suggests that sex ratio as well as other factors in the existing literature can account for the recent evolution in Chinese RER almost completely.