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Replication data for: Demand for Value Added and Value-Added Exchange Rates

Resource Type
  • Bems, Rudolfs
  • Johnson, Robert C.
Publication Date
  • Abstract

    We examine how cross-border input linkages shape the response of demand for value added to international relative price changes. We define a novel value-added real effective exchange rate (REER), which aggregates bilateral value-added price changes. Spillovers via input linkages lower the sensitivity of the value-added REER to price changes by supply chain partners because they counterbalance demand-side expenditure switching. Input linkages also raise the price elasticity of demand relative to the conventional REER framework, making demand more sensitive to REER changes. Using global input-output data, we demonstrate that these conceptual insights are quantitatively important in a case study of European competitiveness.
  • Is supplemented by
    DOI: 10.1257/mac.20150216 (Text)
  • Bems, Rudolfs, and Robert C. Johnson. “Demand for Value Added and Value-Added Exchange Rates.” American Economic Journal: Macroeconomics 9, no. 4 (October 2017): 45–90.
    • ID: 10.1257/mac.20150216 (DOI)

Update Metadata: 2019-10-13 | Issue Number: 1 | Registration Date: 2019-10-13

Bems, Rudolfs; Johnson, Robert C. (2016): Replication data for: Demand for Value Added and Value-Added Exchange Rates. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.