We perform a survival analysis of the policy composed of an intermediate exchange rate regime and a closed financial account. The analysis is novel because we deal with the potential endogeneity between the two policies by analyzing the duration of the policy mix, estimate a multiple destinations model and control for unobserved heterogeneity. Financial development, inflation, per capita income, reserves, size, trade openness, election cycles, and the global acceptance of intermediate regimes and capital controls affect the duration of the policy mix. The evidence shows that a single destination model hides interesting factors affecting the duration of the regime.

Additional Metadata
Keywords Survival analysis, Multiple destinations, Semiparametric, Log-logistic, International monetary system, Financial account.
JEL International Monetary Arrangements and Institutions (jel F33)
Publisher Department of Economics
Series Carleton Economic Papers
Citation
Razo-Garcia, R. (2011). The Duration of Intermediate Exchange Rate Regimes and Capital Controls (No. 11-01). Carleton Economic Papers. Department of Economics.