The Duration of Intermediate Exchange Rate Regimes and Capital Controls
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.
|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 (CEP)|
Razo-Garcia, R. (2011). The Duration of Intermediate Exchange Rate Regimes and Capital Controls (No. 11-01). Carleton Economic Papers (CEP). Department of Economics.