% WARNING: This file may contain UTF-8 (unicode) characters.
% While non-8-bit characters are officially unsupported in BibTeX, you
% can use them with the biber backend of biblatex
%    usepackage[backend=biber]{biblatex}

@techreport{NBERw5731,
 title = "Private Consumption, Nontraded Goods and Real Exchange Rate: A Cointegration_Euler Equation Approach",
 author = "Lin, Kenneth S",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5731",
 year = "1996",
 month = "August",
 doi = {10.3386/w5731},
 URL = "http://www.nber.org/papers/w5731",
 abstract = {This paper presents an empirical study of real exchange rate movements from a consumer's perspective.  Trade between two countries creates a link between real exchange rate and terms of trade.  It is the private consumption of non-traded goods that induces an equilibrium relationship between real exchange rate and private consumption of traded and non-traded goods.  We use Ogaki and Park's (1989) cointegration-Euler equation approach to explore long-run implications from the equilibrium relationship. Given the stationary preference shocks assumption, the testable restriction is that real exchange rate and private consumption of traded and non-traded goods in the home and foreign countries are cointegrated. The empirical evidence suggests that private consumption in the home and foreign countries accounts for a significant fraction of the long run movements of real exchange rate in South Korea and Taiwan. Accounting for real government consumption does not overturn the result.},
}