This paper confronts exchange rate-trade balance hypotheses derived from the elasticity, absorption/switching and monetary approaches to the balance of payments and short-run disequilibrium effects such as the J and S curves with data from a wide range of developing countries. We find strong evidence that the exchange rate affects the trade balance long-run equilibrium even when money and incom...

This article extends the notion of context effects beyond the relational properties of choice alternatives to include attribute balance as a reason for choice. The data reported in two experiments demonstrate that attribute balance has a significant impact on extremeness-aversion and trade-off-contrast effects reported in prior research. The proposition that consumers use attribute balance as a...