Pricing to market of Italian exporting firms
This article investigates the pricing-to-market (PTM) behaviour of Italian exporting firms, using quarterly survey data by sector and by region over the period 1999q1 to 2005q2. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse response analysis shows non-negligible reactions of export-domestic price margins to unanticipated changes in cost competitiveness and in foreign and domestic demand levels, even though these effects appear to be of a transitory nature. For the period 1999 to 2001, a typical PTM behaviour emerges, while, during the most recent years favourable foreign demand conditions allowed firms to increase their export-domestic price margins in face of a strong deterioration of their cost competitiveness. Macroeconomic implications of the observed PTM behaviour are also discussed.
Year of publication: |
2009
|
---|---|
Authors: | Basile, Roberto ; Nardis, Sergio de ; Girardi, Alessandro |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 41.2009, 12, p. 1543-1562
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Pricing to market, firm heterogeneity and the role of quality
Basile, Roberto, (2012)
-
Pricing to market of Italian exporting firms
Basile, Roberto, (2009)
-
Pricing to market, firm heterogeneity and the role of quality
Basile, Roberto, (2012)
- More ...