Estimated Half-Lives: Real Exchange Rate,

Tradable Goods

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Estimation Method

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Level of Pooled Random

Aggregation Fixed Effects Coefficients Mean Group Mean Group-CCE

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2 152 134 113 78

[122, 197] [92, 195] [79, 170] [48, 129]

3 139 100 83 227

[123, 165] [72, 182] [49, 221] [118, 292]

5 96 104 86 12

[86, 115] [76, 165] [64, 108] [10, 13]

6 54 54 36 9

[49, 63] [41, 57] [32, 40] [8, 10]

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Note: Bias-corrected half-life estimates are obtained using the direct bootstrap procedure with 50 replications (Imbs et al. 2005b). Numbers in square brackets are bootstrapped confidence intervals of bias-corrected half-life estimates using the method of Kilian (1998) with 50 replications. The samples consist of 9 goods in level 2, 18 goods in level 3, 46 goods in level 5, and 164 goods in level 6.