1. Grace Juhn Paolo Mauro Section IV (D) Presented by: Mahmoud Arab
Long-Run Determinants of Exchange Rate Regimes: A Simple Sensitivity Analysis
Grace Juhn
Paolo Mauro
Section IV (D)
Presented by: Mahmoud Arab

2. Estimation Strategy Cross-country regression for a variety of years
End of 2000
End of 1990
Estimation Techniques:
Regime classification ( Section IV, A)
Sets right hand side variables ( Section IV, C)

3. Estimation Strategy Why not panel data ? Method:
Problematic since many potential variables do not change over time for many countries
E.g. political instability
Method:
Summary statistics of the potential determinants of exchange rate regime choice by regime group.
Run regression of Exchange rate regimes on all studied variables.

4. Estimation Strategy Initial results:
No variables turn out individually significant.
Instead, the authors select three variables for baseline regression on the basis of following criteria:
Variables have been used by many previous studies
Have solid theoretical underpinning
Available for large number of countries

5. Estimation Strategy These variables are:
Trade openness.
The log of gross national product at purchasing power parity.
The share of trade with countries’ largest trading partner.
After that run regression by adding 4 variables to the baseline until all the data in the study are added.

6. Thanks