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German Mark (german + mark)
Selected AbstractsLosing more than gaining from overall stable prices: the differential perception of increasing versus decreasing prices made the Euro look like a price boosterEUROPEAN JOURNAL OF SOCIAL PSYCHOLOGY, Issue 5 2008Tobias Greitemeyer The present research examined whether price trend misperceptions can be explained by the differential perception of increasing versus decreasing prices. We expected price increases (losses to consumers) to be perceived as being more intense than price decreases (gains to consumers) of the same magnitude. This tendency, in turn, should be positively associated with how people perceive the overall price trend. To test this reasoning, participants in the first two studies were asked to compare German Mark (DM) and Euro prices. First, participants received a menu containing 21 dishes with DM prices, and their price trend expectations were assessed. Then, participants indicated for each dish to what extent the price had changed. Finally, participants' overall price trend judgments were assessed. In both studies, results indicate that price trend judgments were biased toward rising prices. In addition, price increases were perceived as rising more than price decreases of the same magnitude were perceived as falling. This tendency was positively associated with overall price trend judgments, even after controlling for expectations. Study 3 was to replicate these findings in a different domain to demonstrate the general nature and impact of the hypothesized effect. Copyright © 2007 John Wiley & Sons, Ltd. [source] Does the introduction of the Euro have an effect on subjective hypotheses about the price-quality relationship?JOURNAL OF CONSUMER BEHAVIOUR, Issue 3 2006Günter Molz Product prices are often considered to be an indicator for quality. In our experiment we focussed on the question if consumers' hypotheses can be biased by exchanging the digits on price displays due to currency changes. We found that high numbers in a price expressed in terms of a currency with a relatively low value (German Mark) lead to a higher perceived quality level than an equivalent price expressed in terms of relatively high listed currency (Euro). Contrary to our expectations we could not prove that this effect is stronger for premium than for low-budget products. Copyright © 2006 John Wiley & Sons, Ltd. [source] Multivariate GARCH Modeling of Exchange Rate Volatility Transmission in the European Monetary SystemFINANCIAL REVIEW, Issue 1 2000Colm Kearney C32/F31/G15 Abstract We construct a series of 3-, 4- and 5-variable multivariate GARCH models of exchange rate volatility transmission across the important European Monetary System (EMS) currencies including the French franc, the German mark, the Italian lira, and the European Currency Unit. The models are estimated without imposing the common restriction of constant correlation on both daily and weekly data from April 1979,March 1997. Our results indicate the importance of checking for specification robustness in multivariate Generalized Autoregressive Conditional Heleroskedasticity (GARCH) modeling, we find that increased temporal aggregation reduces observed volatility transmission, and that the mark plays a dominant position in terms of volatility transmission. [source] The economic value of technical trading rules: a nonparametric utility-based approachINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2005Hans Dewachter Abstract We adapt Brandt's (1999) nonparametric approach to determine the optimal portfolio choice of a risk averse foreign exchange investor who uses moving average trading signals as the information instrument for investment opportunities. Additionally, we assess the economic value of the estimated optimal trading rules based on the investor's preferences. The approach consists of a conditional generalized method of moments (GMM) applied to the conditional Euler optimality conditions. The method presents two main advantages: (i) it avoids ad hoc specifications of statistical models used to explain return predictability; and (ii) it implicitly incorporates all return moments in the investor's expected utility maximization problem. We apply the procedure to different moving average trading rules for the German mark,US dollar exchange rate for the period 1973,2001. We find that technical trading rules are partially recovered and that the estimated optimal trading rules represent a significant economic value for the investor. Copyright © 2005 John Wiley & Sons, Ltd. [source] The performance of non-linear exchange rate models: a forecasting comparisonJOURNAL OF FORECASTING, Issue 7 2002Gianna Boero Abstract In recent years there has been a considerable development in modelling non-linearities and asymmetries in economic and financial variables. The aim of the current paper is to compare the forecasting performance of different models for the returns of three of the most traded exchange rates in terms of the US dollar, namely the French franc (FF/$), the German mark (DM/$) and the Japanese yen (Y/$). The relative performance of non-linear models of the SETAR, STAR and GARCH types is contrasted with their linear counterparts. The results show that if attention is restricted to mean square forecast errors, the performance of the models, when distinguishable, tends to favour the linear models. The forecast performance of the models is evaluated also conditional on the regime at the forecast origin and on density forecasts. This analysis produces more evidence of forecasting gains from non-linear models. Copyright © 2002 John Wiley & Sons, Ltd. [source] Real Exchange Rate Behaviour under Fixed and Floating Exchange Rate RegimesTHE MANCHESTER SCHOOL, Issue 2 2002James R. Lothian In this paper we examine the stability of the real exchange rate and the macroeconomic effects of alternative exchange rate regimes, including currency union, on real exchange rate behaviour. We focus on the Irish punt in order to exploit its diversity of experience over different nominal exchange rate regimes. We make both temporal and cross-country comparisons of real exchange rate stability for the Irish punt with sterling, the US dollar and the German mark. We reach two conclusions on the basis of our results. The first is that for Ireland, as for most other countries, purchasing power parity provides a reasonably good description of actual exchange rate behaviour over the long run. Our second principal conclusion concerns regime effects. Currency union appears to matter. The real exchange rates we analyse are unambiguously less variable under currency union than under alternative exchange rate systems. Otherwise, however, we find no clear-cut differences in behaviour across regimes. [source] | |||||||||||||||||||