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Market Structure and Exchange Rate Pass-Through
Auer, Raphael; Schoenle, Raphael - C.E.P.R. Discussion Papers - 2015
We study firm-level pricing behavior through the lens of exchange rate pass-through and provide new evidence on how firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import prices, we identify two facts: First, exactly the firms that...
Persistent link: https://www.econbiz.de/10011276376
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Macroeconomics of International Price Discrimination
Corsetti, Giancarlo; Dedola, Luca - C.E.P.R. Discussion Papers - 2003
This Paper builds a baseline two-country model of real and monetary transmission in the presence of optimal international price discrimination by firms. Distributing traded goods to consumers requires non-tradables, intensive in local labour. Because of distributive trade the price elasticity of...
Persistent link: https://www.econbiz.de/10005124101
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Endogenous Exchange Rate Pass-Through When Nominal Prices Are Set in Advance
Devereux, Michael B; Engel, Charles M; Storgaard, Peter … - C.E.P.R. Discussion Papers - 2002
-through under the condition that exchange rate volatility rises as the degree of pass-through falls. We show that the relationship … between exchange rate volatility and economic structure may be substantially affected by the presence of endogenous pass … low volatility of money growth will have relatively low rates of exchange rate pass-through, while countries with …
Persistent link: https://www.econbiz.de/10005124428
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Why do Consumer Prices React Less than Import Prices to Exchange Rates?
Bacchetta, Philippe; van Wincoop, Eric - C.E.P.R. Discussion Papers - 2003
It is well known that the extent of pass-through of exchange rate changes to consumer prices is much lower than to import prices. One explanation is local distribution costs. Here we consider an alternative, complementary explanation based on the optimal pricing strategies of firms. We consider...
Persistent link: https://www.econbiz.de/10005498013
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Exchange Rate Pass-through and Monetary Policy in South Africa
Aron, Janine; Farrell, Greg; Muellbauer, John; … - C.E.P.R. Discussion Papers - 2010
exchange rate shocks in the period. Further, pass-through is found to decline with recent exchange rate volatility and there is …
Persistent link: https://www.econbiz.de/10008784768
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Exchange Rate Pass-Through, Domestic Competition, and Inflation: Evidence from the 2005/08 Revaluation of the Renminbi
Auer, Raphael - C.E.P.R. Discussion Papers - 2015
Import competition from China is pervasive in the sense that for many good categories, the competitive environment that US firms face in these markets is strongly driven by the prices of Chinese imports, and so is their pricing decision. This paper quantifies the effect of the...
Persistent link: https://www.econbiz.de/10011145441
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Openness and the Case for Flexible Exchange Rates
Corsetti, Giancarlo - C.E.P.R. Discussion Papers - 2006
value added; the lower the import content of consumption, the higher the exchange rate volatility implied by optimal …
Persistent link: https://www.econbiz.de/10005114386
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The Simple Geometry of Transmission and Stabilization in Closed and Open Economies
Corsetti, Giancarlo; Pesenti, Paolo - C.E.P.R. Discussion Papers - 2005
This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. We present a stylized theoretical framework, and illustrate its main properties with the help of an intuitive graphical apparatus. Among the issues we discuss: optimal...
Persistent link: https://www.econbiz.de/10005114457
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Importers, Exporters, and Exchange Rate Disconnect
Amiti, Mary; Itskhoki, Oleg; Konings, Jozef - C.E.P.R. Discussion Papers - 2012
Large exporters are simultaneously large importers. In this paper, we show that this pattern is key to understanding low aggregate exchange rate pass-through as well as the variation in pass-through across exporters. First, we develop a theoretical framework that combines variable markups due to...
Persistent link: https://www.econbiz.de/10011083651
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Quality Pricing-to-Market
Auer, Raphael; Chaney, Thomas; Sauré, Philip - C.E.P.R. Discussion Papers - 2014
We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus...
Persistent link: https://www.econbiz.de/10011083682