Does Capital Control Policy Affect Real Exchange Rate Volatility? A Novel Approach Using Propensity Score Matching
Abstract
Propensity score matching is a statistical technique recently introduced in the field
of
economics, which researchers use to assess the treatment effect of policy initiatives.
In this study I use propensity score matching to analyze the treatment effect of capital
control policy on real exchange rate volatility. I find the treatment effect of adopting
relatively liberal capital controls is a decrease in real exchange rate volatility.
This is the first empirical study
to provide insight into the causal relationship between capital controls and real
exchange rates, which may be crucial to macroeconomic policy decisions for emerging
economies such as China.
Description
Winner of the 2008 Robert F. Durden Prize
Type
Honors thesisDepartment
EconomicsPermalink
https://hdl.handle.net/10161/836Citation
Gross, Adam (2008). Does Capital Control Policy Affect Real Exchange Rate Volatility? A Novel Approach
Using Propensity Score Matching. Honors thesis, Duke University. Retrieved from https://hdl.handle.net/10161/836.Collections
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