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From Fixed to Float: A Competing Risks Analysis

Author

Listed:
  • Chong, Terence Tai Leung
  • He, Qing
  • Chan, Wing Hong
Abstract
This paper examines the determinants of exchange rate regime of a country. A competing risks model (CRM) is estimated. It is found that the way a country exits a fixed exchange rate regime is affected nonlinearly by the duration of the peg. In addition, countries with a lower growth rate of reserves, more incidences of banking crises, higher trade concentration and lower degree of capital-account liberalisation are more likely to have a crisis-driven exit.

Suggested Citation

  • Chong, Terence Tai Leung & He, Qing & Chan, Wing Hong, 2014. "From Fixed to Float: A Competing Risks Analysis," MPRA Paper 60824, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60824
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    References listed on IDEAS

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    More about this item

    Keywords

    Competing risks model; Duration dependence; Orderly exits; Crisis-driven exits; Kaplan-Meier estimators.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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