TY  - JOUR
AU  - Engel,Charles
TI  - Real Exchange Rates and Relative Prices: An Empirical Investigation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4231
PY  - 1994
Y2  - April 1994
UR  - http://www.nber.org/papers/w4231
L1  - http://www.nber.org/papers/w4231.pdf
N1  - Author contact info:
Charles Engel
Department of Economics
University of Wisconsin
1180 Observatory Drive
Madison, WI  53706-1393
Tel: 608/262-3697
Fax: 608/262-2033
E-Mail: cengel@ssc.wisc.edu
AB  - This paper uncovers a striking empirical regularity: the consumer price of a good relative to a different good within a country tends to be much less variable than the price of that good relative to a similar good in another country. This fact seems to hold for all goods except very simple, homogeneous products. Models of real exchange rates are likely to have predictions regarding this relation, so this fact may provide a useful gauge for discriminating among models.
ER  -