01789cas a2200253 a 4500 AALejournalIMF000375 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451962161 1018-5941 BD-DhAAL BD-DhAAL Johnston, Louis. Real Exchange Rate Levels, Productivity and Demand Shocks : Evidence from a Panel of 14 Countries / Louis Johnston, Menzie Chinn. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We investigate the long-run relationship between the real exchange rate, traded and nontraded productivity levels, and government spending for 14 OECD countries, using recently developed panel cointegration tests. The results indicate that under certain assumptions it is easier to detect cointegration in panel data than in the available time series; moreover, the rate of reversion to long-run equilibrium is estimated with greater precision. Using the model augmented by oil prices, we find that in 1991 (the last year productivity data are available) there is less overvaluation of the U.S. dollar than that implied by a naive version of purchasing power parity. Mode of access: Internet Chinn, Menzie. IMF Working Papers; Working Paper ; No. 1997/066 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/066/001.1997.issue-066-en.xml IMF e-Library