Norambuena, Carlos Noton - In: Estudios de Economia 30, 1 Year 2003, pp. 133-155
A microeconomic model of imperfect Cournot competition is used to derive an explicit endogenous relationship between price level and the nominal exchange rate. We obtain a mark-up that varies endogenously with consumer real income. Using the model, the estimated pass-through –namely the impact...