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Parsley, David C.

Overview
Works: 14 works in 91 publications in 1 language and 667 library holdings
Classifications: HB1, 330.072
Publication Timeline
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Publications about David C Parsley
Publications by David C Parsley
Most widely held works by David C Parsley
Limiting currency volatility to simulate goods market integration : a price based approach by David C Parsley( Book )
18 editions published in 2001 in English and held by 120 libraries worldwide
This paper studies the effect of instrumental and institutional stabilization of exchange rate volatility on the integration of goods markets. Rather than using data on volume of trade, this paper employs a 3-dimensional panel of prices of 95 very disaggregated goods (e.g., light bulbs) in 83 cities around the world during 1990-2000. We find that the impact of an institutional stabilization-currency board or dollarization-promotes market integration far beyond an instrumental stabilization. Among them, long-term currency unions are more effective than more recent currency boards. All have room to improve relative to a U.S. benchmark
Convergence to the law of one price without trade barriers or currency fluctuations by David C Parsley( Book )
10 editions published in 1996 in English and held by 90 libraries worldwide
Using a panel of 51 prices from 48 cities in the United States we provide an upper bound estimate of the rate of convergence to Purchasing Power Parity. We find convergence rates substantially higher than typically found in cross-country data. We investigate some potentially serious biases induced by i.i.d. measurement errors in the data, and find our estimates to be robust to these potential biases. We also present evidence that convergence occurs faster for larger price differences. Finally, we find that rates of convergence are slower for cities farther apart. However, our estimates suggest that distance alone can only account for a small portion of the much slower convergence rates across national borders
Purchasing power disparity during the floating rate period : exchange rate volatility, trade barriers and other culprits by Shang-Jin Wei( Book )
11 editions published in 1995 in English and held by 90 libraries worldwide
Using a panel of 12 tradable sectors in 91 OECD country pairs (14 countries), we study the deviations from the purchasing power parity during the recent floating exchange rate period. (1) We find some evidence that the deviations are positively related to exchange rate volatility as well as to transportation costs. (2) Once we have controlled for these two factors, free trade areas such as the EC and the EFTA do not seem to reduce significantly the deviations from PPP relative to other OECD countries. (3) Although only using the post- 1973 data, we are able to find strong evidence of mean reversion towards PPP. The estimated half lives of the deviation from PPP are about four years and three quarters for the non-EMS countries in the sample, and four years and one quarter for the EMS countries. (4) We find evidence of non-linearity in the rate of mean reversion: the convergence occurs faster for country pairs with larger initial deviations
A prism into the PPP puzzles : the micro-foundations of Big Mac real exchange rates by David C Parsley( Book )
10 editions published between 2003 and 2004 in English and held by 83 libraries worldwide
"The real exchange rate (RER) has been called the single most important price, yet its behavior exhibits several puzzles. In this project, we use Big Mac prices as a unique prism to study the movement of real exchange rates. Part of our innovation is to match these prices to the prices of individual ingredients. There are a number of advantages associated with our approach. First, unlike the CPI RER, we can measure the Big Mac RER in levels. Second, unlike the CPI RER, for which the attribution to tradable and non-tradable components involves assumptions on the weights and the functional form, we (almost) know the exact composition of a Big Mac, and can estimate the tradable and non-tradable components relatively precisely. Third, we can study the dynamics of the RER in a setting free of: the product-aggregation bias, the temporal aggregation bias, and the bias generated by non-compatible consumption baskets across countries. Fourth that Engel's result that deviations from the law of one price are sole explanation for RER movements does not hold generally. We offer some evidence that departure from the Engel effect can be systematically linked to economic factors"--NBER website
Insignificant and inconsequential hysteresis : the case of U.S. bilateral trade by David C Parsley( Book )
6 editions published in 1994 in English and held by 77 libraries worldwide
This paper casts doubt on the validity of the hysteresis hypothesis as an explanation of the persistent U.S. trade deficits in the 1980s. We propose two tests to investigate two different implications of the hypothesis. The first implication is that cumulative changes in exchange rates, in addition to current exchange rate levels, are important determinants of trade flows. The second implication is that foreign exporting firms' perceptions of exchange rate volatility will affect their decisions to enter or exit the market. We find little support for either aspect of the hysteresis hypothesis
Explaining the border effect : the role of exchange rate variability, shipping costs, and geography by David C Parsley( Book )
10 editions published in 2000 in English and held by 77 libraries worldwide
This paper exploits a three-dimensional panel data set of prices on 27 traded goods, over 88 quarters, across 96 cities in the U.S. and Japan. We show that a simple average of good-level real exchange rates tracks the nominal exchange rate well, suggesting strong evidence of sticky prices. Focusing on dispersion in prices between city-pairs, we find that crossing the U.S.-Japan Border' is equivalent to adding as much as 43,000 trillion miles to the cross-country volatility of relative prices. We turn next to economic explanations for this so-called border effect and to its dynamics. Distance, unit-shipping costs, and exchange rate variability, collectively, explain a substantial portion of the observed international market segmentation. Relative wage variability, on the other hand, has little independent impact on segmentation
Slow passthrough around the world : a new import for developing countries by Jeffrey A Frankel( file )
8 editions published in 2005 in English and held by 64 libraries worldwide
"Developing countries traditionally exhibit passthrough of exchange rate changes that is greater and more rapid than high-income countries, but have experienced a rapid downward trend in recent years in the degree of short-run passthrough, and in the adjustment speed. As a consequence, slow and incomplete passthrough is no longer exclusively a luxury of industrial countries. Using a new data set--prices of eight narrowly defined brand commodities, observed in 76 countries --we find empirical support for some of the factors that have been hypothesized in the literature, but not for others. Significant determinants of the passthrough coefficient include per capita incomes, bilateral distance, tariffs, country size, wages, long-term inflation, and long-term exchange rate variability. Some of these factors changed during the 1990s. Part (and only part) of the downward trend in passthrough to imported goods prices, and in turn to competitors' prices and the CPI, can be explained by changes in the monetary environment. Real wages also work to reduce passthrough to competitors' prices and the CPI, confirming the hypothesized role of distribution and retail costs in pricing to market. Rising distribution costs, due perhaps to the Balassa-Samuelson-Baumol effect, could contribute to the decline in the passthrough coefficient in some developing countries"--National Bureau of Economic Research web site
Border, border, wide and far, how we wonder what you are by David C Parsley( Book )
9 editions published in 1999 in English and held by 48 libraries worldwide
Crossing national borders, adds significantly to price dispersion. This study of prices in Japan and the United States finds that a susbstantial part of that border effect is attributable to distance, shipping costs, exchange rates, and relative variability in wages
Sudden deaths : taking stock of political connections by Mara Faccio( Book )
3 editions published in 2006 in English and held by 12 libraries worldwide
Slow passthrough around the world : a new import for developing countries? ( Computer File )
2 editions published in 2005 in English and held by 2 libraries worldwide
Evaluating exchange rate management : an application to Korea by David C Parsley( Computer File )
1 edition published in 2009 in English and held by 1 library worldwide
A price based approach to estimate the effects of monetary arrangements on trade integration by David C Parsley( Book )
1 edition published in 2004 in English and held by 1 library worldwide
Border, border, wide and far, how we wonder what you are by David C Parsley( Sound Recording )
1 edition published in 1999 in English and held by 1 library worldwide
Crossing national borders, adds significantly to price dispersion. This study of prices in Japan and the United States finds that a susbstantial part of that border effect is attributable to distance, shipping costs, exchange rates, and relative variability in wages
Border, Border, Wide and Far, How We Wonder What You Are by Shang-Jin Wei( Computer File )
1 edition published in 1999 in English and held by 1 library worldwide
 
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Alternative Names
Corey Parsley, David 1954-
Parsley, David 1954-
Parsley, David Corey 1954-
Languages
English (91)
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