Extensive and intensive margins and exchange rate regimes

Masashige Hamano*, Pierre M. Picard

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


This paper studies the costs and benefits of fixed and flexible exchange rate regimes in the presence of endogenous intensive and extensive margins of trade. The net benefit depends on the levels and volatilities of those margins as well as on their correlation with consumers’ preferences. A fixed exchange rate regime is preferred for sufficiently high labour supply elasticities and lower love for product diversity. Delays between entry and production make fixed exchange rate regimes less attractive.

Original languageEnglish
Pages (from-to)804-837
Number of pages34
JournalCanadian Journal of Economics
Issue number3
Publication statusPublished - 2017 Aug 1

ASJC Scopus subject areas

  • Economics and Econometrics


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