Diagnosing an early symptom of Dutch disease: An empirical analysis of the Norwegian real exchange rate
Year: 2015
Type: dissertation
Abstract: This thesis discusses the theoretical aspect of Dutch disease in detail, but focuses on \ninvestigation of real appreciation in the Norwegian kroner as a symptom of Dutch Disease. \nThe Behavioral Equilibrium Exchange Rate model (BEER) was applied to analyze the \nmisalignment of the kroner from its expected equilibrium. In this paper, the BEER model \ntakes into account four economic fundamentals relevant to Norway, that being oil price \n(proxy for Terms of trade), final government consumption, a productivity differential and a \ntrade openness variable. The analysis carried out required the implementation of a Vector \nError Correction Model and thereafter a brief application of the Hoderick Prescott Filter. The \nresults obtained indicate that that the Norwegian krone exhibits a trend of being overvalued.
Source: BIBSYS Brage (BIBSYS (Norway))
Author: Losha Naidoo Tangjerd
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2507603798