The rational expectations assumption, e.g. in life-cycle models and portfolio-choice models, prescribes that all actions are line with a well-structured unbiased system of expectations. In reality, justification identification nontrivial, we lack empirical evidence especially for the long run. This paper starts to fill this gap elicits short-run long-run sample households is designed be represe...

T his study investigates the short-run and long-run impact of real exchange rate misalignment and volatility on Indonesian export to the US by exploiting the disaggregated data of export volume. The proxy of real exchange rate misalignment was obtained by estimating the fundamental equilibrium exchange rate (FEER) model, and the exchange rate volatility measured by employing the GARC...