Atkeson, Andrew; Burstein, Ariel - Federal Reserve Bank of San Francisco - 2007
Data on international relative prices from industrialized countries show large and systematic deviations from relative … international relative prices. We find that when our model is parameterized to match salient features of the data on international … observed in the data because firms choose to price-to-market. We then examine how pricing-to-market depends on the presence of …