01792cas a2200253 a 4500 AALejournalIMF001299 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855043 1018-5941 BD-DhAAL BD-DhAAL Spilimbergo, Antonio. Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption / Antonio Spilimbergo, Athanasios Vamvakidis. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity of substitution (CES) between products from different countries. We investigate the validity of this assumption by estimating manufacturing export equations for 56 countries over 26 years. We find that the hypothesis of CES is rejected and that the export equations that contain two real effective exchange rates (one in relation to OECD countries and one in relation to non-OECD countries) perform on average considerably better than the traditional ones. Mode of access: Internet Vamvakidis, Athanasios. IMF Working Papers; Working Paper ; No. 2000/128 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/128/001.2000.issue-128-en.xml IMF e-Library