@article{TheDynamicEffectsofExchangeRateChangesonCanada’sTradeBalance:650,
      recid = {650},
      author = {Dion, Richard and Jacob, Jocelyn},
      title = {The Dynamic Effects of Exchange Rate Changes on Canada’s  Trade Balance, 1982-1987},
      publisher = {Bank of Canada},
      address = {1989},
      pages = {1 online resource (26 pages plus appendices)},
      abstract = {Until recently, most of the analysis that the Bank of  Canada has conducted on Canada's trade balance has been  based on RDXF, a large macroeconomic model which contains a  very detailed trade sector. However, experience has shown  that a smaller, less disaggregated, trade model might be  better suited for investigating some important analytical  issues. A preliminary version of such a model is presented  in this paper. In spite of its small size, the model is  able to incorporate many of the compositional and sectoral  effects of the larger model and provides more realistic  dynamic responses to various shocks. Non-linearity in the  response of imports to changes in domestic demand and long  lags associated with changes in competitiveness and real  commodity prices are distinguishing features. The  intra-sample fit and extra-sample forecast performance of  the model are quite respectable, and the estimated  parameter values appear to be reasonably stable over the  sample period. The paper presents a series of simulations  designed to estimate the contribution of movements in the  exchange rate and other variables to the evolution of the  trade balance over the period 1982-1987. A similar  decomposition is performed on export and import prices over  the period 1986Q4-1988Q1.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/650},
      doi = {https://doi.org/10.34989/swp-1990-1},
}