scholarly journals The Big Mac Index Dynamics

2020 ◽  
Vol 1 (1) ◽  
pp. 56-65
Author(s):  
Yu-Tsang Chen ◽  
Amy Li
Keyword(s):  
Exchange Rate ◽  
Income Level ◽  
High Income ◽  
Nominal Exchange Rate ◽  
Stability And Convergence ◽  
Rate Theory ◽  
Significant Difference ◽  
The World ◽  
Us Dollar ◽  
Index Estimation

The Big Mac Index is a tool that makes exchange-rate theory more palatable. In recent years the Big Mac Index has been used as a practical way to determine the over- or under-valued international currencies according to the theory of Purchasing Power Parity. The theory uses the Big Mac as a tradable single-good basket to equalize the Dollar-value of the hamburger around the world through arbitrage. The enormous popularity of the Big Mac Index arose the questions of how effective the Big Mac price is as an indicator of income level and how accurate the exchange rate movement predictions are based on the Big Mac prices over time? The statistical analysis of this paper is implemented using data from 2013 to 2020 from The Economist and from the World Bank for 42 countries. US Dollar, Euro, British Pound, Chinese Yuan, and Japanese Yen are used as base currencies to track the dynamics of stability and convergence. As a qualitative indicator of movement in the nominal exchange rate, however, there is no significant difference in countries of different income levels and economic stability. The Big Mac Index estimation consists with previous studies in convergence for countries with high income level. Contradictory to previous studies, the Big Mac Index estimation tends to fluctuate for currency in country with high income level like US Dollar only in 2020. The stability of Big Mac Index dynamics from 2013 to 2020 holds for the rest of the other four currencies.

scholarly journals Testing the Fair Game Hypothesis for US Dollar/Albanian Lekë Exchange Rate Over the Period January 1994- December 2012

2013 ◽  
Vol 2 (4) ◽  
pp. 311
Author(s):  
Llambrini Sota ◽  
Fejzi Kolaneci
Keyword(s):  
Exchange Rate ◽  
Nominal Exchange Rate ◽  
Rate Process ◽  
Level Of Confidence ◽  
The Us ◽  
Fair Game ◽  
Us Dollar

The purpose of the paperis to test the fair game hypothesis for exchange rate process USDollar / Albanian Lekë over theperiod January 1994 – December 2012.The results of this study include: The fairgame hypothesis is rejected for mean monthlyexchange rate US Dollar/Albanian Lekë over the period January 1994 – December 2012at 99.99% level of confidence. Day – to –dayfluctuations of the nominal exchange rateUS Dollar/ Albanian Lekë during the period 1 January 2008 – 31 December 2008 followan unfair game process at99.99% level of confidence.The fair game hypothesis isrejected for mean monthly exchange rateover the period January 2008 – December 2012at 95% level of confidence. Day – to-day fluctuations of nominalexchange rate USDollar/Albanian Lekë during the period1 January 2004 – 31 December 2012 follow anunfair game at 99.99% levelof confidence. A similar result holds for relative firstdifferences of the daily exchange rate USDollar/Albanian Lekëat 99.99% level ofconfidence. These findings are noteworthy because it has long been thought of that themovements in the US dollar / Albanian lekë nominal exchange rate must be a fair game.

scholarly journals Roles of Political and Economic Environments on Agricultural Commodity Import Demand in Developing Economy: A Case Study of Rice Sub-Sector in Nigeria

2015 ◽  
Vol 7 (12) ◽  
pp. 84
Author(s):  
Sunday B. Akpan ◽  
Glory E. Emmanuel ◽  
Inimfon V. Patrick
Keyword(s):  
Exchange Rate ◽  
Capacity Utilization ◽  
Import Demand ◽  
Nominal Exchange Rate ◽  
Domestic Production ◽  
World Price ◽  
Long Run ◽  
The World ◽  
Short Run ◽  
Industrial Capacity

<p>Nigeria is currently the largest importer of milled rice in the world. The country has implemented several trade policies, set up institutions and incentives to boost domestic production with the intention to meet both domestic and international demands. Despite these attempts and favorable climatic, manpower and edaphic conditions in the country, Nigeria still spent millions of dollars on annual basis on rice imports. Based on this assertion, the study rather examined the roles of political and economic environments on rice import demand from 1960 to 2014 in Nigeria. Time series data were obtained from FAO, Central Bank of Nigeria and National Bureau of Statistics as well as World Bank. Augmented Dickey-Fuller-GLS unit root test showed that all series were integrated of order one. The long-run and short-run elasticity of rice import demand were determined using the techniques of co-integration and error correction models. The trend in rice import revealed that, the country had witnessed significant average positive exponential growth rate of about 15.975% in rice import from 1960 to 2014. The empirical results revealed that, the long run import demand function of rice responded negatively to the world price, industrial capacity utilization, nominal exchange rate, and the value of gross domestic production; whereas, it reacted positively to period of civilian rule, nominal value of external reserve, period of liberalization and the net volume of credit to the entire economy. The symmetric adjustment coefficient of rice import demand to a long run equilibrium stood at 39.65% per annum. In the short run, rice import had a significant negative and elastic relationship with the domestic and world price of rice; while it has significant positive inelastic association with external reserve and net credit to the economy. Based on these results; it is recommended that, the Nigeria government should designed programmes and incentives to boost industrial capacity utilization in the country. Markets determine nominal exchange rate should prevail in the economy. The country should regulate its foreign reserve policy by setting a threshold, above which excess deposit should be plough back to the domestic economy inform of investments rather than support excessive importation.</p>

scholarly journals Participation and Achievement in the Summer Paralympic Games: The Influence of Income, Sex, and Assistive Technology

2021 ◽  
Vol 13 (21) ◽  
pp. 11758
Author(s):  
Giulia Oggero ◽  
Louise Puli ◽  
Emma Maria Smith ◽  
Chapal Khasnabis
Keyword(s):  
Assistive Technology ◽  
Income Level ◽  
High Income ◽  
High Quality ◽  
Middle Income ◽  
Middle Income Countries ◽  
Low Middle Income Countries ◽  
Significant Difference ◽  
Paralympic Games ◽  
Low And Middle Income

Global participation at the Paralympic Games has been steadily growing in the past 60 years. However, inequities in relation to geographic representation of Paralympians, sex representation, access to assistive technology, and medal success remain. The objectives of this research are to describe and compare trends in Paralympians’ participation and achievements in the Summer Paralympic Games by income level and sex, including in events requiring assistive products (wheelchairs, hand cycles/trikes, and prostheses). A retrospective secondary analysis of publicly available data was conducted. Participation, sex, and medal tally data were extracted from data available on the International Paralympic Committee website and archives. Data regarding income and population were collected from publicly available data available from the World Bank website. Participation in the Summer Paralympic Games differs significantly by income level (p = 0.000) with high- income countries sending, on average, more Paralympians than low- and middle-income countries. There is a significant difference between male and female participation (p = 0.00), with approximately 29% of all Paralympians being female. High-income countries demonstrate significantly higher achievement than low- and middle-income countries (p = 0.000), including in events requiring assistive products (p = 0.007). Despite growth in overall participation, low- and middle-income countries remain severely underrepresented in both participation and achievement at the Paralympic Games, especially in the events that require high quality assistive products to succeed. More equitable participation and achievement in the Paralympics may be supported by addressing the barriers for females, for people from low- and low-middle income countries, and for those without access to high quality assistive products required.

scholarly journals Wealth Redistribution after Exchange Rate Devaluations

2018 ◽  
Vol 108 ◽  
pp. 552-556
Author(s):  
Andres Drenik ◽  
Gustavo Pereira ◽  
Diego J. Perez
Keyword(s):  
Exchange Rate ◽  
Emerging Economies ◽  
Low Income ◽  
Foreign Currency ◽  
High Income ◽  
Nominal Exchange Rate ◽  
Wealth Redistribution ◽  
Exchange Rate Movements ◽  
Degree Of Redistribution

We document that the likelihood of having assets in foreign currency is increasing in households' income within many emerging economies. This pattern leads to heterogeneous exposures of wealth to exchange rate movements. We analyze the redistribution of liquid wealth across households after nominal exchange rate devaluations due to the revaluation of nominal net wealth denominated in different currencies. We find that there is an important degree of redistribution from households with low income to those with high income.

Study on the HMM of Nonlinear Nominal Exchange Rates

2011 ◽  
Vol 268-270 ◽  
pp. 1823-1827
Author(s):  
Shuo Zhang ◽  
Xiao Feng Hui
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Nominal Exchange Rate ◽  
Statistical Characteristics ◽  
Rate Theory ◽  
Purchasing Power ◽  
Rate Model ◽  
Power Parity ◽  
Nominal Exchange Rates ◽  
The Exchange Rate

The exchange rate model for the study of the exchange rate theory has very important significance. After analyzing the successful nonlinear model of real exchange rate based on the purchasing power parity (PPP) theory, the nonlinear problem of nominal exchange rate is studied in this paper. Through a research on a period of nominal exchange rate with nonlinear characteristics, a nonlinear statistical model of nominal exchange rate based on the hidden Markov model (HMM) is proposed, and the parameters of the model are estimated. Hypothesis testing shows that the model can accurately describe the statistical characteristics of the nominal exchange rate time series. The parameters showed that the nominal exchange rate model proposed in this paper, to some extent, supports that deviations from purchasing power parity (PPP) are nonlinear mean reversions.

scholarly journals The Big Mac Index: A Shortcut To Inflation And Exchange Rate Dynamics? Price Tracking And Predictive Properties

2014 ◽  
Vol 13 (4) ◽  
pp. 751
Author(s):  
Luis San Vicente Portes ◽  
Vidya Atal
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Nominal Exchange Rate ◽  
Purchasing Power ◽  
Power Parity ◽  
Exchange Rate Dynamics ◽  
Inflation Rates ◽  
The World ◽  
Exchange Rate Movements ◽  
Using Data

The Economist magazine has been publishing the Big Mac Index using it as a rule of thumb to determine the over- or under-valuation of international currencies based on the theory of Purchasing Power Parity since 1986. According to the theory, using the Big Mac as a tradable single-good basket, the Dollar-value of the hamburger should be equalized around the world due to arbitrage. The popularity and following of the Big Mac Index led the authors to the following two questions: 1) How effective is the Big Mac price as an indicator of overall inflation? and 2) how accurate are exchange rate movement predictions based on Big Mac prices? They find that Big Mac prices tend to lag overall inflation rates, which is highly important in studies that use Big Mac prices as measures of affordability or real incomes over time. As a guide to exchange rate movements, there is support for the theory of Purchasing Power Parity, but only as a qualitative indicator of movement in the nominal exchange rate in rich and economically stable countries, proving less effective in forecasting exchange rate movements in emerging markets. The statistical analysis is carried out using data from 1986 to 2012 from The Economist and from the World Bank for 54 countries. The importance of these findings lies on the widespread use of the index and thus perpetuation of perceptions on the relative value of currencies in the areas of corporate finance, international trade and finance, and international business.

scholarly journals Quitline Information Included on Cigarette Packaging: An Assessment of Country Adherence to WHO FCTC Guidelines, 2007 to 2018

2021 ◽  
Vol 18 (22) ◽  
pp. 12193
Author(s):  
Christopher M. Seitz ◽  
Kenneth D. Ward ◽  
Zubair Kabir
Keyword(s):  
Global Health ◽  
Tobacco Control ◽  
World Bank ◽  
Income Level ◽  
High Income ◽  
World Health ◽  
Health Warnings ◽  
Middle Income ◽  
The World Bank ◽  
The World

The purpose of this study is to evaluate country adherence to the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) guidelines in terms of including quitline information on cigarette packaging. Data were gathered from the WHO’s Global Health Observatory database. The study included countries that were signatories to the FCTC, had a toll-free quitline, and required health warnings on cigarette packaging. Countries were then classified by income level according to the World Bank. From 2007 to 2018, the number of countries that established a quitline increased from 34 to 60. During the same timeframe among those countries, the number of countries that included information about the quitline on cigarette packaging increased from 5 to 37, with a larger proportion (79%) of high-income countries promoting their quitlines on cigarette packaging compared to middle-income (45%) countries. Although there was an increase in adherence to the WHO FCTC guidelines, there is still a need for several countries to include quitline information on cigarette packaging.

scholarly journals The Gold Cliché

2020 ◽  
Vol 4 (10) ◽  
pp. 141-148
Keyword(s):  
Exchange Rate ◽  
Literature Review ◽  
Inflation Rate ◽  
The Other ◽  
Extensive Literature ◽  
Pricing Model ◽  
The Us ◽  
The World ◽  
Us Dollar ◽  
The Uk

This study reports the findings from an extensive literature review on the factors that influence the prices of gold and the connections/interrelationships among global gold markets. Among other things, evidence observed from the literature review suggests that whilst there are seven main markets for gold across the world now, the prices of gold in the US and other markets do not have much impact on the prices of gold in the UK. The evidence also suggests that the impacts of the other factors like the exchange rate of the US dollar, inflation rate, interest rate, etc., on the price of gold are hard to quantify and use in a pricing model. Further, as more researches being published regarding gold factors, the newly discovered factors become intertwined with the factors that were discovered earlier by previous researches, hence complicates the explanation of gold factors.

scholarly journals Stochastic Analysis of the Exchange Rate of Naira, YEN, GBP, CFA and FRANC in Relation to US Dollar and Predicting the Naira for the Year 2025

2019 ◽  
Vol 4 (6) ◽  
pp. 15-18
Author(s):  
Ledisi Giok Kabari ◽  
Believe B. Nwamae
Keyword(s):  
Exchange Rate ◽  
Stochastic Analysis ◽  
Prediction Accuracy ◽  
The Other ◽  
The Past ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
The World ◽  
Us Dollar ◽  
Other World

In Nigeria today, constant fluctuations of exchange rate or volatility is of great importance in one way or the other to the general public because its fluctuation has an effect on the economy. The objectives of the paper were to investigate the recent changes in the naira currency and other world currencies if there appear to be any relationship. Data was obtained from daily exchange rate of different countries’ currencies from 12/10/2005 and 2/11/2018 with 3,190 observations obtainable from the Data and statistics publication of the Central Bank of Nigeria. The study investigates the past recent changes in the naira and four foreign currencies of the world (Pounds, Yen, Cfa and Swiss Franc) and their relationship plotted as signal using MATLAB 2016a.  The four currencies were randomly selected from the list of world currencies. Multiple Linear Regression was used to perform the analysis. The analysis of 3,190 observation resulted in a prediction model that has 97% prediction accuracy, which suggests that under ideal circumstances and baring any natural disaster, total collapse of the economy or major crisis like recession.  The results from the model of this study suggest that fluctuation in currency exchange rate of other currencies has significance on the Nigerian exchange rate and as such should be considered when designing exchange rate policies.

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