| Summary: | 碩士 === 國立東華大學 === 經濟學系 === 104 === In this paper we estimate the long-run equilibrium real effective exchange rate of renminbi (RMB) within the framework of the behavioral equilibrium real exchange rate (BEER) model, and exchange rate misalignment in China from 1996Q1 to 2015Q1. Different from the previous papers, we employ the Gregory-Hansen co-integration technique to the BEER model, which allowing for endogenous structural breaks in the co-integration regression. The empirical results are as follows: First, the authorities concerned in China may not intervene the RMB exchange rate in the long-run by monetory policy and foreign reserve holdings. Second, using the Gergory-Hansen co-integration technique to estimate the equilibrium real exchange rate could provide a more reasonable results than Johansen co-integration technique.
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